Hampshire EPC's For Rented Residential and Commercial Properties
Minimum Energy Efficiency Standards – MEES
Below is a summary of the new MEES regulations. You will need to seek more in-depth reading to satisfy yourself with the new regulations which can be found here: www.gov.uk/government/publications/the-private-rented-property-minimum-standard-landlord-guidance-documents
From April 1st 2018 all landlords will now need an EPC rated in band E or above when starting a new tenancy or lease agreement.
From April 1st 2020, landlords must not continue to rent out a relevant domestic property, which is already let, if that property has an EPC rating of F or G.
There is a slight caveat to this new regulation. Properties owned by landlords that are below band E will need energy efficiency improvements made at no upfront cost to the landlord. So, what this means is that you will need to look at any grants available to make these improvements and you may also need the agreement from your tenants to make any improvements.
There are also some exemptions in place and if your property is exempt from these regulations, you must add it to the National PRS Exemptions Register here: prsregister.beis.gov.uk/NdsBeisUi/used-service-before and this will last for 5 years.
Other exemptions include: -
All the relevant energy efficiency improvements for the property have been completed and the property remains below band E.
A recommendation measure cannot be wholly financed at no cost to the landlord.
Where a certain measure cannot be installed due to its negative impact on the building.
Third party consent cannot be obtained.
Installation of certain measures would reduce the property market value by >5%.
Properties of national importance such as listed buildings.
Places of worship.
Detached properties of less than 50m2
Properties due to be demolished.
Please also be aware that EPC’s have been in existence now for over 10 years and many EPC’s are needing to be renewed. So, if you have an EPC on your rented property, please check the expiration date and band rating.
Commercial properties have similar regulations which should be explored. One main difference is that all rented commercial properties will need an EPC in band E or above from April 2023 and any energy efficiency improvements should have a 7 year pay back. Exemptions do apply and there is a register for this exemption. You will need some qualified calculations to prove that the 7 year rule doesn’t apply.