Landlord Legislative Update May 2019 Residential Landlord Update for joomag | Page 6

MINIMUM ENERGY
EFFICIENCY
STANDARDS
(MEES)
Since 1 April 2018, landlords have not been permitted to let a
residential property with an EPC rating below an E on a new
tenancy (including an extension or renewal), unless they registered
an exemption on the PRS Exemptions Register. penalty.
(d) Where the landlord has failed to comply with compliance notice,
the Local Authority may impose a financial penalty of up to £2,000
and may impose the publication penalty.
Tenancies in existence before 1 April 2018 with an EPC rating of F or
G were given an extra two years to make appropriate improvements.
From 1 April 2020, these properties will fall under the scope of the
2015 Regulations. From 1 April 2019 the ‘no cost to the landlord’
exemption will no longer be available and will no longer appear on
the PRS Exemptions Register. A local authority may not impose a financial penalty under both
paragraphs (a) and (b) above in relation to the same breach of the
Regulations. But they may impose a financial penalty under either
paragraph (a) or paragraph (b), together with financial penalties
under paragraphs (c) and (d), in relation to the same breach. Where
penalties are imposed under more than one of these paragraphs,
the total amount of the financial penalty may not be more than
£5,000.
As a result, existing properties with the ‘no cost to the landlord’
exemption will not appear on the PRS Exemptions Register after
31 March 2020. The Government has said that all affected landlords
will be contacted directly at the start of April. Under the new rules’
landlords will be expected to contribute up to £3,500 (inc. VAT)
per property to make energy efficiency improvements to raise a
property’s EPC rating to a minimum of an E.
If the cost to achieve an EPC E exceeds £3,500, landlords will be able
to register a ‘high-cost’ exemption on the PRS Exemptions Register
providing that they submit three separate quotes from different
installers that evidences a higher cost.
Where improvements have been made since 1 October 2017 up
until 31 March 2019, these costs can be deducted from the £3,500
cap to determine the value of any further improvements to be
made.
It is important to note that this maximum amount of £5,000 applies
per property, and per breach of the Regulation. Given this, it means
that, if after having been previously fined up to £5,000 for having
failed to satisfy the requirements of the Regulations, a landlord
proceeds to unlawfully let a substandard property on a new
tenancy; the local enforcement authority may again levy financial
penalties up to £5,000 in relation to that new tenancy.
W H AT T H I S M E A N S F O R YO U
GSC Grays have been working and will continue to work with our
landlords to ensure their properties meet the regulations for MEES
and applying for exemptions as necessary.
The ‘consent exemption’ will also no longer be available where a
sitting tenant has refused a Green Deal finance plan.
Where the Local Authority decides to impose a financial penalty,
they have the discretion to decide on the amount of the penalty, up
to maximum limits set by the Regulations. The maximum penalties
are as follows:
(a) Where the landlord has let a sub-standard property in breach
of the Regulations for a period of less than 3 months, the Local
Authority may impose a financial penalty of up to £2,000 and may
impose the publication penalty.
(b) Where the landlord has let a sub-standard property in breach
of the Regulations for 3 months or more, the Local Authority may
impose a financial penalty of up to £4,000 and may impose the
publication penalty.
(c) Where the landlord has registered false or misleading information
on the PRS Exemptions Register, the Local Authority may impose a
financial penalty of up to £1,000 and may impose the publication
LANDLORD LEGISLATIVE UPDATE 2019 • 4