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Latest MEES regulations will be final ‘nail in the coffin’ on buy to let

Claims is made by leading landlords' representative who says extra costs of rented properties up to minimum standards are too high.

Nigel Lewis

The latest Minimum Energy Efficiency Standards (MEES) regulations to come into force will be a final ‘nail in the coffin’ for landlords, it has been claimed.

The 15% of rented properties in England and Wales that have an EPC rating of F or G now have to prove that the improvements to their properties will cost more than £3,500 including VAT to upgrade to an E rating or face being banned from renting their homes out.

From April 2020, all existing tenancies which require an EPC will need to have a minimum E rating, effectively banning all F and G homes from the market.

“It’s another nail in the coffin for the buy to let industry”, says Charles Clarke (left), chairman of the Eastern Landlords Association (ELA) based in Norwich.

“Landlords face a big dilemma, costs can run into the thousands and as a result several people [within the ELA] have already sold up as they’ve had enough.

“If you’ve got one or two properties and aren’t running a company, the work is going to be too expensive for many people and a real trauma.”

Landlords who have not carried out the work, are not exempt and who continue to rent out properties can be fined up to £5,000 by local authorities.

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.

 

 

April 2, 2019

One comment

  1. As an Energy Assessor I do of course have a differing point of view. Landlords hold assets that have been largely left untouched in terms of regulation to minimum energy standards. EPCs have been around for a long time and it makes sense to strive to make improvements over time.
    You wouldn’t run a car for years without replacing parts and servicing it, so why is it persecution that landlords are being asked to make a contribution to keeping their properties efficiency and competitive in the market.
    Since 2007 I have heard that EPCs are a tax on ownership. I prefer to see this as a cost of making money from an asset.

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