A consultation on amending the MEES Regulations (see the link below for background to the regulations) for domestic properties has been announced. The consultation closes on 13 March 2018. The existing Regulations partly come into force on 1 April 2018.
It is being proposed that the "no cost to the landlord" principle in achieving the required minimum standard of energy efficiency is removed and replaced with a capped landlord financial contribution which would apply where a landlord is unable to obtain third party funding. The contribution is proposed to be capped at £2500 per property so as to "protect" landlords from excessive costs although it could add to the financial impact on landlord of ensuring their properties are upgraded to the required standards.
The government plans to issue its response to the consultation in spring 2018, to set out amended regulations during autumn 2018 with a view to them coming into force on 1 April 2019.
This is intended to provide clarity to domestic landlords about the future direction of MEES, so that they can make informed judgements about investing in their property portfolio.
From the 1 April 2018 there will be a requirement for any rented commercial and residential property to meet a minimum energy efficiency rating. Properties will need to have a minimum energy performance rating of E. The minimum energy efficiency standard (MEES) will apply to new lets and renewals of tenancies with effect from 1st April 2018 and for all existing tenancies from 1st April 2020. It will be unlawful to rent a property which breaches the requirement for a minimum E rating, unless there is an applicable exemption which must be registered.