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Since 1 April 2018, letting a property which does not meet the minimum energy efficiency standards will attract a financial penalty of up to £10,000 for commercial property and £4000 for domestic property
The Minimum Energy Efficiency Standards Regulations (MEES Regulations) are a set of legal requirements that landlords must comply with to improve the energy efficiency of privately rented domestic and non-domestic properties in England and Wales.
On 1 April 2018, certain prohibitions under the MEES Regulations were introduced which relate to letting sub-standard property i.e. properties with an energy efficiency rating below E. Where a property is sub-standard, landlords may not:
However, if a landlord has made all the relevant energy efficiency improvements that there are for the property or if an exemption applies, he will be permitted to let the property even if it is sub-standard. Our blog ‘How to Comply with Minimum Energy Efficiency Standards: funding or exemption?' provides some further details on the exemptions available.
Failure to comply with the lettings restrictions can result in a financial penalty. The amount of the penalty depends on whether the property is domestic or non-domestic and how long the breach has continued for. The maximum penalty for domestic property is £4,000. The maximum penalty for non-domestic property is £10,000 or 20% of the rateable value of the property (up to a maximum of £150,000), whichever the greater.