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Landlords’ energy efficiency and opportunity

The countdown has started for landlords towards the introduction of new Minimum Energy Efficiency Standards – “MEES” – which is to be implemented on April 1 next year. MEES will require residential rental properties to achieve a minimum ‘E’ energy rating and will apply to new leases and renewals from April 2018.  

Head of Lettings at Balfours, Charlotte George, MARLA, explains: “The regulations mean that properties with an Energy Performance Certificate rating of F or G are classified as ‘sub-standard,’ exactly a year from now. From April 1, 2018, agents and landlords must not grant a lease on a sub-standard property. 

“We are encouraging all our landlords to be proactive to ensure that properties coming on the market meet the minimum MEES regulation requirements, within the 12 month time frame. Key to that is to understand how lease terms, break dates, renewals dates and planned refit periods fit within the MEES timetable.

“A vacating tenant gives opportunity to explore the potential of increasing rental and asset value through making energy efficiency improvements and combining these with other refit upgrades, while satisfying the new standards,” Charlotte adds.

For the past year, tenants living in private rental sector property with F and G rated homes have been able to request improvements, such as more insulation. The landlord has been legally bound to bring the property up to at least an E rating, although not if it requires upfront costs.

She concludes: “We are encouraging all our landlords to be aware as the MEES regulation will be further tightened in April 2020, when residential landlords must not continue to let out sub-standard property.” For more information call Charlotte George on 01743 277069.

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