Apr 06

Are you a Landlord of a Residential Property?

Posted by gowenstevensadmin on Monday 6th April 2020

Apart from certain exemptions, the position since 1 April 2018 has been that Landlords cannot grant a Lease/tenancy of a residential or commercial property if it has an EPC rating below “E”. This a requirement of the Minimum Energy Efficiency Scheme (“MEES”).

From 1 April 2020, MEES now apply to existing lettings as well as to any new lettings.

The obligation on Landlords is to carry out any work required to improve the rating to “E” or above. Landlords of residential properties do not have to spend more than £3,500 (including VAT) to improve the rating of the property to “E” or above. If the minimum cost of the improvement work is more than £3,500 or the Landlord has spent £3,500 and the rating has not been improved to “E” or above then the Landlord can register an exemption.

The maximum penalty for breach of this requirement is £5,000 per property. However, there does not yet seem to have been much enforcement action taken by local authorities since the initial provision was brought in on 1 April 2018.

Obviously, during the current Coronavirus pandemic, it is unlikely that this will change but once the lockdown period has ended this could change. The safest course of action is to ensure that any tenanted properties you own meet the MEES requirement.

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