Landlord’s guide to energy efficiency standards
If you want to make a success of your business as a landlord, then I’s essential to keep up to speed with changes in laws and regulations. If you don’t comply with your legal obligations then you won’t just have angry tenants, you could face hefty fines too. Some of the newest legislation is around energy performance.
Energy Performance Certificates and MEES
In the past, landlords were only required to have energy performance certificates for their properties. These certificates were just a basic statement of how energy efficient the property was looking at aspects such as insulation, efficiency of the boiler, double glazing and so on. Energy performance certificates rated properties on a scale of A for best to G for least energy efficient. New legislation which came into effect in April 2018 has banned new tenancy agreements from being drawn up when the property is at the bottom end of the scale, a F or G rating. This new requirement applies to both domestic and residential properties. If you read references to MEES – the Minimum Energy Efficiency Standard – this is what it’s referring to.
Implications for landlords
If you already have an energy performance certificate for your property, and it’s rated as E or better, than you have no need to worry. You can carry on renting out your property to new tenants just as you have been doing in the past. If however your property has been rated as F or G, then you should take steps. Renting out a property which doesn’t meet the minimum standards can lead to a fine of up to £5000. In some cases, buildings might be exempt from the new MEES legislation, but you have to register the exemption centrally.
Improving energy efficiency
The legislation is getting even tighter in April 2020. After that date, you’ll no longer be allowed to let people carrying on living in a band F or G property even if they’ve been there for decades. So that means you have to take steps now to improve the energy efficiency of your rental properties. Start by looking at your current energy performance certificate, which will give clues as to where the weak spots are in your property. There might also be grants available to improve insulation or install a new boiler.
There’s not a simple tick box way of working out how to increase a home’s energy efficiency as every house is different. There are a few steps which can help improve most homes though. Loft insulation in older properties is usually not thick enough to conform to current standards so an easy win is to lay more rolls of insulation in the loft space. Similarly, filling cavity walls with insulation can dramatically cut heat loss through walls. Swap single-glazed windows can be changed for double glazed units if budget allows. Upgrade your old, inefficient boiler for a modern one which uses less fuel and keeps your home just as warm. Improving your energy efficiency is going to cost – but it will mean that you can continue to legally let your property.
