Legislation came into effect in April 2018, initially through the Energy Efficiency (Private Rented Sector) (England and Wales) Regulations 2015, but which has had alterations made since, laying
down the minimum allowed EPC ratings for properties that are rented out.
This is known as MEES, or the 'Minimum Energy Efficiency Standards' legislation.
The current effect of MEES is that since 1st April 2020, properties covered by the MEES Regulations that are rented out by private landlords must meet an EPC rating of E or better. Exemptions are
available for specific circumstances.
Up to date information about MEES is available via the link below. Included on the Government website are tests to indicate whether your let property is subject to the requirements of the
legislation, and details of the £3500 cost cap on improvements, and how to register exemptions:
https://www.gov.uk/guidance/domestic-private-rented-property-minimum-energy-efficiency-standard-landlord-guidance
The new Labour Government of 2024 intend to change the format of EPCs and increase the minimum level of energy performance of building in the Private Rental Sector (PRS).
To this end, they have issued two sets of consultation which indicate their suggested way forward and invite comments from all parties.
In essence, the mandatory C rating of EPCs is back on the table, with new tenancies requiring this rating from 2028 and existing tenancies from 2030.
EPCs are also likely to change to multi-metric indicators rather than the single metric that they currently show.
On the 4th November 2024, the government launched consultation on EPC reform in England & Wales. The closing date for responses is 26th February 2025.
https://www.gov.uk/government/consultations/reforms-to-the-energy-performance-of-buildings-regime
On the 7th February 2025 the government launched fresh consultation on the future of MEES for private landlords in England & Wales. The closing date for responses is 2nd May 2025.
The details of this consultation can be viewed here:
https://www.gov.uk/government/consultations/improving-the-energy-performance-of-privately-rented-homes-2025-update
In this consultation, the government put forward their suggestions on the future of MEES and invite comments from all parties.
In summary, the consultation discusses:
- Following future EPC reform (covered in separate consultation), the use of new alternative EPC metrics as the basis for MEES for privately rented homes - The old Energy Efficiency Rating (EER)
would be replaced with four separate metrics - Fabric, Heating System, Smart Readiness & Energy Cost
- The government's preferred approach of having to meet a primary standard set against a 'building fabric' performance metric and also a secondary standard set against either the 'smart
readiness' metric or a 'heating system' metric, with landlord discretion on which secondary metric their property meets.
- A propsed increase in the maximum required investment for Private Rented Sector (PRS) MEES to £15,000 per property and for landlords to be able to register an exemption if expenditure would take
them over this
figure.
- Whether the government should increase the cost cap exemption period to ten years
- The preferred implementation timeline requiring ‘new tenancies’ to meet the higher standard from 2028 and ‘all tenancies’ to meet the higher standard by 2030
- As an EPC reform transition measure, whether landlords should be able to demonstrate their properties are compliant with the existing standard of EPC E using their past EPC
- Whether properties that have an EPC rating of C against the EER on EPCs before 2026 should be recognised as compliant with the future standard until their EPC expires or is replaced
- Whether landlords would be required to commission a new EPC before taking action to comply with the higher MEES requirements
- Whether government should develop an affordability exemption
- Whether government should apply the PRS MEES Regulations to short-term lets
- What actions government could take, including changes to the law to encourage or require smart meters in properties undergoing efficiency upgrades, to increase the number of smart meters
installed in the PRS
- Whether the current MEES exemptions available to landlords are suitable
- Whether to keep a potential requirement on lettings agents and online property platforms under review (ie at bay) whilst the PRS Database is being developed for properties in England