Landlords are at risk of financial penalties and being unable to let
their properties if they fail to meet minimum energy efficiency
standards (MEES) that come into play in 2018.
Law firm Maples Teesdale has warned that the new standards equate to a
ticking time bomb that could have a detrimental impact on rental income
and property values if left unaddressed.
The non-domestic minimum energy efficiency regulations for England and
Wales will mean that by 1 April 2018, all relevant properties will have
to be improved to a minimum energy efficiency standard before being let
to tenants, except where certain exemptions apply.
Additional Tenant’s Energy Efficiency Improvement Regulations must be
in force by 1 April 2016 and will empower tenants to request consent for
energy efficiency measures that may not unreasonably be refused by the
landlord.
Neil Sagoo, partner at Maples Teesdale, said: “These regulations are
likely to have a big impact on the private rented sector. They are
presenting a straightforward ultimatum: bring your properties up to
scratch in terms of energy efficiency, or risk losing income.”
The consequences for landlords who do not invest in bringing their
properties up to minimum standards are likely to be severe. There will
be financial penalties (possibly geared to the rent earned while the
landlord is in breach) applied to those who fail to comply and, in
extreme cases, a tribunal can force landlords to make the necessary
changes.
“This means that landlords can no longer pay lip service to energy
efficiency,” said Sagoo, “Whereas it was once a worthy aspiration, it is
becoming is fundamental as fire safety or building regulations and is
to be ignored at your peril.”
Following a brief consultation at the end of last year, the Government
has indicated that it aims to have the regulations in place ahead of the
May general election. Implementation of MEES is likely to follow in
stages; coming into effect on all new lettings from April 2018 and for
remaining existing lettings from April 2023.
http://www.landlordtoday.co.uk/news_features/Landlords-face-ticking-timebomb-of-energy-compliance
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