From 1 April 2023, the MEES Regulations will make it unlawful for landlords to continue to let a property with an EPC rating of F or G without a valid exemption.
Action to take before 1 April 2023:
- Review portfolios to identify properties without an EPC or those with a rating of F or G. Once identified, establish whether a new EPC assessment is required.
- Determine whether a property benefits from any of the exemptions. An exemption must be registered to avoid enforcement action.
- Obtain estimates for the cost of improvement works to bring the property up to the required EPC rating.
- Check the terms of the lease to establish whether any costs can be classified as service charge items.
Check the terms of the lease to see if the landlord is allowed to carry out works to improve the EPC rating, and whether any third-party consent is needed.
MEES obligations are expected to increase, with government proposals for requirements of a minimum EPC rating of C in 2027 and B in 2030. Landlords may therefore begin implementing any improvements in advance.
Please note, the above is not relevant to: leases of 6 months or less (provided that the tenant has not already been in occupation for at least 12 months, or there is provision for extending the term); or leases of 99 years or more.
For more information please contact Michelle Goodrum or your usual Druces adviser.
