What Are Energy Efficiency Standards for Landlords?

Actually in the year 2015 minimum energy efficiency standards were introduced according to the Energy Efficiency Regulations 2015. And this rule was implemented from 1 April 2018, and according to these regulations landlords just can’t get the contract of tenancies renewed if they fall below the E category in the Energy Performance Certificate of the building and they should keep in mind that building should fall within the latitude of the MEES and there will be no exemption in this case. Here in this article we are discussing about the energy efficiency standards that landlord have to maintain.

Which Buildings and Tenancies Falls under MEES:

The MEES (minimum energy efficiency standards) apply to the massive majority of properties, but keep in mind that there are certain buildings and tenancies which are exempt from this situation. That include:

  • Buildings that are not required to get the EPC, just like industrial sites, non-residential agricultural buildings that have low energy demand, workshops, some of the listed buildings, provisional properties and holiday’s spots.
  • Buildings in which EPC is more than 10 years old or even the places where there will be no EPC

Other Exempted Properties from MEES:

So if your building doesn’t fall in the above mentioned exclusions even then there are chances that it will be exempted from the MEES. It include:

  • So if you have gone through all energy efficiency improvements, under the golden rule of green deal within a seven-year of payback and still your building doesn’t meet the required standards.
  • Next you can get exempted if third party have stopped to make any type of improvement in the building that would be a local authority or even a sitting tenant.

Keep in mind that these exemptions will only last for five years after that you have to pay for this.

Penalties for Non-Compliant Buildings Residential or Commercial:

So if you will not meet the requirement of MEES then keep in mind that you have to pay huge amount of penalties. And its rates will differ depending on the fact that whether you own a residential property or commercial property.

Penalties for Residential Properties

So if you own a residential property and you haven’t meet the requirement of MEES from past three months, then you will be liable to pay £2,000, but if the time period is more than this then the amount of penalty may go up to £4,000.

Penalties for Commercial Properties

So if you own a commercial property and your property is not according to the requirements of MEES then you will be liable to pay the penalties. But keep in mind that these penalties will be of higher amount as compared to the residential properties. So if you are letting out a commercial property that is non-compliant for below three months, then the penalty that will be imposed on you will be up to £5,000, or even 10% of its ratable value. And you have to pay the amount whichever will be higher, and its maximum penalty might go up to £50,000.

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