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.