The UK government is currently consulting on proposed changes to the Minimum Energy Efficiency Standard (“MEES”) for residential properties in the private rented sector. This potential reform aims to enhance energy efficiency by requiring landlords to meet higher standards, aligning with the broader goals of reducing carbon emissions and promoting sustainability.
Proposed Changes to MEES
The main proposal involves setting a stricter MEES that corresponds to the upcoming Energy Performance Certificate (EPC) reforms in 2026. Under the government’s preferred approach, landlords would need to ensure their properties meet a standard that equates to an EPC rating of C under the current system. At present, the minimum requirement is an EPC rating of E or above.
The phased introduction of the new standard would mean:
- All new tenancies must comply with the higher standard by 2028.
- All existing tenancies must comply by 2030.
Additional Key Proposals
Beyond raising the EPC standard, the consultation includes several other significant proposals:
- Cost Cap on Improvements: The government proposes a cap of £15,000 per property for required improvements. If a landlord has spent up to this amount but the property still does not meet the new standard, they may apply for a ten-year exemption. An affordability exemption is also being considered, which would reduce the cost cap to £10,000 in certain cases.
- Short-Term Lets to be Included: The government is considering expanding the scope of the MEES Regulations to cover short-term rentals, such as holiday lets, requiring them to adhere to the same efficiency standards as other privately rented properties.
- Smart Meter Installation: The consultation is also exploring potential regulatory measures to increase the installation of smart meters in privately rented properties, ensuring better energy monitoring and efficiency.
- Reforming the Exemptions Regime: The government seeks input on how to refine and reform the existing exemptions regime under the MEES Regulations to improve clarity and effectiveness.
Implications for Landlords and Tenants
If implemented, these changes will have a significant impact on landlords operating within the private rented sector. Compliance with stricter MEES could require substantial investment in property improvements, including insulation upgrades, installation of energy-efficient heating systems, and window replacements. While the proposed cost cap offers some financial safeguards, landlords will need to plan ahead to ensure compliance within the required timelines.
For tenants, these changes promise lower energy costs and improved living conditions through better-insulated and more energy-efficient homes. This aligns with the government’s broader commitment to reducing carbon emissions and tackling fuel poverty.
Consultation Deadline and Next Steps
The government’s consultation on these proposals is open until 2 May 2025. Landlords, tenants, and other stakeholders are encouraged to review the proposals and provide feedback.
At Ison Harrison Solicitors, we are closely monitoring these developments and can provide expert legal advice to landlords navigating the evolving regulatory landscape. If you need guidance on how these changes could affect your rental properties or wish to discuss potential compliance strategies, please contact our property law team.
If you have questions or would like to enquire, then please contact us on 0113 284 5000 or commprop@isonharrison.co.uk.
