{"id":299,"date":"2023-04-21T15:12:11","date_gmt":"2023-04-21T14:12:11","guid":{"rendered":"https:\/\/astonknowles.com\/news-and-views\/?p=299"},"modified":"2025-05-12T14:52:20","modified_gmt":"2025-05-12T13:52:20","slug":"updated-epc-mees-rules-are-you-compliant","status":"publish","type":"post","link":"https:\/\/astonknowles.com\/news-and-views\/property-news\/2023\/04\/21\/updated-epc-mees-rules-are-you-compliant\/","title":{"rendered":"UPDATED EPC & MEES RULES: Are you compliant?"},"content":{"rendered":"\n

All landlords, investors, developers, and tenants must be aware that from 1st April 2023 there are now minimum Energy Efficiency Standards (MEES) requirements and Energy Performance Certificates (EPC) rules, and severe penalties are in place for a party who has not taken the necessary steps to comply by the deadline.<\/p>\n\n\n\n

Commercial properties<\/strong><\/p>\n\n\n\n

It is now an offence to continue to let or rent out a property if it does not have an EPC rating of at least E. The penalty is based on the rateable value of the property and will be between \u00a310,000 \u2013 \u00a3150,000 per breach. Details of the breach may also be made publicly available.<\/p>\n\n\n\n

There\u2019s a possibility that requirements will tighten again in the near future, with a proposal that commercial properties must have an EPC rating of C or higher by 1 April 2027, and B or better by 2030.<\/p>\n\n\n\n

Residential properties<\/strong><\/p>\n\n\n\n

The current EPC rating of E or higher for residential properties has already been in place since 1 April 2020. Current government proposals suggest that in 2025 this is subject to change again and the rating will be required to be C or higher for any new lettings. By 2028 it must also apply to any continuing tenancies.<\/p>\n\n\n\n

The law has made it clear that the obligation to ensure properties are compliant with the legislation rests with the landlord, and responsibility is not to be delegated to the tenant, although in some cases costs may be recoverable from the service charge.<\/p>\n\n\n\n

Property owners will therefore need to be able to show that:<\/p>\n\n\n\n

\u2022 the current EPC rating is in line with the rules; or<\/p>\n\n\n\n

\u2022 all the \u2018relevant energy efficiency improvements\u2019 that can be made have been made, or that there are no such improvements to make; or<\/p>\n\n\n\n

\u2022that there is a valid exemption.<\/p>\n\n\n\n

Both commercial and residential properties can be exempt if they fall into any of the following categories;<\/p>\n\n\n\n

CONSENT<\/strong><\/p>\n\n\n\n

\u2022 A tenant has refused to permit the work required<\/p>\n\n\n\n

\u2022 Another tenant in the same building has refused to consent to the work<\/p>\n\n\n\n

\u2022 Consent is required from a third party who has refused, or placed such conditions on the works that the owner cannot reasonably comply.<\/p>\n\n\n\n

\u2022 A lender with charge over the property has refused the works<\/p>\n\n\n\n

\u2022 Planning permission for works to proceed is denied, either by the local planning authority or a party such as English Heritage<\/p>\n\n\n\n

This exemption will be in place until one or more of the following events:-<\/p>\n\n\n\n

\u2022 The owner sells the property<\/p>\n\n\n\n

\u2022 The determination of the lease held by the tenant who refused consent, or the determination of any third party who refused consent (although it should be noted that the law is unclear on these two points, therefore legal advice should be sought)<\/p>\n\n\n\n

\u2022 The expiry of five years<\/p>\n\n\n\n

\u2022 The completion of works to bring the EPC rating up to minimum legal requirements.<\/p>\n\n\n\n

DEVALUTION<\/strong><\/p>\n\n\n\n

The owner may be able to claim exemption of both of the following apply:<\/p>\n\n\n\n

\u2022 An independent valuation confirmed that market value of the property would be reduced by more than 5% should improvements be carried out; and<\/p>\n\n\n\n

\u2022 The exemption has been registered correctly on the PRS Exemptions Register<\/p>\n\n\n\n

The exemption will remain in place until<\/p>\n\n\n\n

\u2022 The owner sells the property, in which case the new owner can apply for a new exemption<\/p>\n\n\n\n

\u2022 Five years has passed although it\u2019s not clear from the guidance when this period commences<\/p>\n\n\n\n

\u2022 When works are complete and the property is compliant<\/p>\n\n\n\n

SHORT TERM LETTING EXEMPTION<\/strong><\/p>\n\n\n\n

When an existing tenancy is in place, a landlord can apply for a temporary exemption, and be given six months to comply with the new rules. The landlord must register via the PRS Exemptions Register, and one of the following circumstances must apply:<\/p>\n\n\n\n

\u2022 where the grant of the lease is due to a contractual obligation<\/p>\n\n\n\n

\u2022 the insolvency of the tenant, where the landlord was the tenant\u2019s guarantor<\/p>\n\n\n\n

\u2022 where the landlord has exercised its right as guarantor or former tenant to take an overriding lease under 19 Landlord and Tenant (Covenants) Act 1995<\/p>\n\n\n\n

\u2022 the deemed grant of a new lease by operation of law<\/p>\n\n\n\n

\u2022 the grant of a lease by order of the court.<\/p>\n\n\n\n

This exemption will last until six months after whichever is the later of:<\/p>\n\n\n\n

\u2022 the date on which the landlord became the landlord by virtue of one of the above; or<\/p>\n\n\n\n

\u2022 the date on which a new lease has been granted by a court order other than under the Landlord and Tenant Act 1954.<\/p>\n\n\n\n

If you would like an EPC for your property, we’d be delighted to assist. Please contact the Aston Knowles team on 0121 362 7878 or email enquiries@astonknowles.com<\/p>\n\n\n\n

The content covered by this blog is not exhaustive and does not contain definitive advice. Specialist legal advice should be sought in relation to any queries that may arise.<\/em><\/p>\n\n\n\n

Image by Leopictures<\/a> from Pixabay<\/a><\/p>\n\"Facebook\"<\/a>\"linkedin\"<\/a>\"youtube\"<\/a>\"instagram\"<\/a><\/span>","protected":false},"excerpt":{"rendered":"

All landlords, investors, developers, and tenants must be aware that from 1st April 2023 there are now minimum Energy Efficiency Standards (MEES) requirements and Energy Performance Certificates (EPC) rules, and severe penalties are in place for a party who has not taken the necessary steps to comply by the deadline. Commercial properties It is now […]<\/p>\n","protected":false},"author":1,"featured_media":304,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-299","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property-news"],"yoast_head":"\nUPDATED EPC & MEES RULES: Are you compliant? - Aston Knowles<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/astonknowles.com\/news-and-views\/property-news\/2023\/04\/21\/updated-epc-mees-rules-are-you-compliant\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"UPDATED EPC & MEES RULES: Are you compliant? - Aston Knowles\" \/>\n<meta property=\"og:description\" content=\"All landlords, investors, developers, and tenants must be aware that from 1st April 2023 there are now minimum Energy Efficiency Standards (MEES) requirements and Energy Performance Certificates (EPC) rules, and severe penalties are in place for a party who has not taken the necessary steps to comply by the deadline. 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