Originating from the Energy Act 2011, the Minimum Energy Efficiency Standard regulations come into force from 1 April 2018 for all new lease and lease renewals and from 1 April 2023 for all existing leases. The new standards will make it unlawful to rent a property that does not have a EPC rating of ‘A’ through to ‘E’.
Landlords will have to implement energy efficiency improvements, unless their building is classed as being exempt on the PRS Exemptions Register, which goes live in April 2017. Financial penalties up to a maximum of £150,000 could be enforced on Landlords who do not comply with the new standards.
The MEES regulations will impact dilapidations matters, mid-term and at lease end. Landlords will have to enter buildings mid-term to undertake works, which will cause access issues and the Jervis V Harris clause will not carry the same power it does for disrepair works. The argument of supersession will be strengthened at lease end as wholesale replacement of obsolete building elements and plant will need to be undertaken by the Landlord.
Whilst the MEES regulations does not fundamentally change standard dilapidations procedures, energy enhancement works both mid-term and at term end will surely increase in prevalence and the impact of such improvements must be considered.
Please click here for more information on MEES Regulations.