Key Points
- MEES relates to properties which are offered for or have been rented.
- The current MEES threshold requiring a Band E Energy Performance Certificate (EPC) for private rented properties – unless a property exemption has been registered – which has been in place since 2018 is to change.
- Current Government Policy is that a Band C Rating will be required by October 2030 on all properties, and will additionally extend to all Social Housing which although always required EPCs on letting did not have to comply with the MEES requirements of the properties being in Band E.
- The proposed MEES Requirements have not been finalised or presented to parliament.
The Current Situation
All properties, residential (domestic) and commercial (non-domestic), require an EPC in Band E to be in place when a property is advertised for letting, unless an exemption has been registered or the dwelling is Social Housing but which still requires an EPC in place. If a property is awarded a Band F or G EPC Rating, for the Private Rental Sector, an exemption can be applied for which remains in force for 5 years.
The Proposed MEES Requirements – Overview
There will initially be different rules for Private Rented Properties and Social Housing, but which will finally merge by October 2039.
The proposed changes for non-domestic or commercial properties have yet to be decided and disseminated.
Private Residential Rented Sector – Proposed MEES Requirements
It is highly likely that the EPC title will change to something different, and instead of containing a single graded (A->G) metric (broadly relating to the estimated cost of supplied energy), it will contain four graded (A->G) metrics relating to: Energy Cost, Fabric Performance, Heating System, and Smart Readiness (PV, Battery Storage, and Solar Thermal systems). There will be a secondary metric relating to carbon emissions, and delivered energy.
The duration, or validity period of the ‘EPC’ is expected to remain at 10 years from the date of issue or unless updated in the interim.
It is also expected Regulations will be clarified regarding Housing in Multiple Occupancy (HMO), short term rentals such as holiday lets, and the clarification of the inclusion of historic or listed buildings for which there remains some ambiguity.
Dual Metric Requirement. For Private Rental Sector Dwellings there will be a requirement that two (of the four) metrics will be required to be met, the first of which will be the Fabric Metric, the second one of either the Heating or Smart Metric, that requirement being mandatory from 1st October 2030, with both being in Band C.
Existing EPC to new ‘EPC’ transition. It is proposed that if a dwelling has an existing EPC in place on 30th September 2030 and the Rating is in Band C, the dwelling will not require an ‘EPC’ in the new format with the Dual Metrics (both in Band C) until the existing EPC expires which would then be replaced by the Dual Metric new ‘EPC’.
Improvement Spending Cost Cap increase. The current Cost Cap of £3,500 per dwelling will increase to £10,000, but with landlords being able to include spending from October 2025 within the higher limit.
Penalty for non-compliance. Increased to £30,000 per dwelling from the current £2,000 – £4,000 penalty depending upon the duration of the breach.
Exemptions. Exemptions will be able to be registered in much the same way as it is possible to do currently, but the exemption period will be extended to 10 years.
Exemptions are expected to be permitted for:
High-Cost Exemptions;
Cost Cap Exemptions;
Third Party Consent Exemptions;
Negative Impact Exemptions;
Property Value Adjustment Exemptions; and
Solid Wall Insulation Exemptions.
Compliance Date. 1st October 2030
Caveats and Limitations.
The proposals have yet to be submitted for parliamentary approval.
The proposals could change if there was a change in Government elected with a different approach or mandate.
It is not yet known what the ‘pass/fail’ criteria for achieving a Band C award in any of the four metrics will be, although there is an expectation that providing fabric improvements can be supported by accredited documentary evidence confirming compliance with the Building Regulations Part L requirements at the date the improvements were made, an existing Band C EPC would achieve a Band C ‘EPC’ under the new criteria. It should be noted that ‘sign-off’ by a Local Authority’s Building Control official or similar, does not constitute confirmation that Building Regulation Part L requirements were met.
Social Housing Sector – Proposed MEES Requirements.
By 1st October 2030 all Social Housing properties must achieve an ‘EPC’ Rating in Band C in one of the 4 metrics, whether in the existing EPC or revised ‘EPC’ formats.
By 1st October 2039, a second metric (of the four) is required to have been achieved, with the Social Housing Provider selecting which of the second metric they wish to comply with.
Social Housing Exemptions. It is anticipated there will be no difference in the exemptions between the Private Rental and Social Housing Sectors.
What can West London Energy Assessors do to support this?
Property owners proposing to undertake improvements to a property in the expectation of then being able to rent that property are encouraged to check with their selected building contractor before any work starts or a contract is awarded, that documentation will be provided at the end of the project which will confirm compliance with Building Regulations has been complied with if the project specification is followed.
If in doubt as to whether the proposed documentation will be acceptable, the building owner is encouraged to discuss their concerns with West London Energy Assessors.