There has been media coverage this week following an Isle of Wight Council Cabinet decision to adopt a new policy for financial penalties relating to Minimum Energy Efficiency Standards, or MEES for short. But what exactly does this mean for landlords and managing agents on the Isle of Wight?
Being an Isle of Wight company ourselves at Valerien Property Services, we keep a close eye on any new developments relating to MEES for properties whether that be local or national, so the decision by the Isle of Wight Council is not unexpected.
If you have not followed the news or have not caught up with it yet, what the Cabinet decision essentially means is the council has set the limit as to which landlords can be fined if they continue to rent out properties that fail to meet current MEES requirements under UK law (assuming it is adopted without political challenge by the end of June 2022) when producing an energy performance certificate (EPC).
In law, those minimum standards are that properties must be at least E or above to rent out or face a fine of up to £5000 for every breach (i.e. every new tenancy).
EPCs are a produced by a qualified independent energy assessor and rate the energy performance of a property from A to F in addition to what it could potentially achieve. They are valid for 10 years and outline what measures can be taken to improve the energy rating of a property, although these are merely recommendations. We provide EPC services at Valerien.
While it is very easy to shout and scream at the council for setting a £5000 top limit for a fine during a cost of living crisis, in reality it is no different to what is already widely in use by other authorities across the UK. It is all part of a commitment to try and encourage more energy efficient homes in the rental sector.
However, what was not referenced in the council papers and meeting was that in a few years time, this decision will also need to be updated once again. That's because there are currently measures going through Parliament to amend MEES regulations even further by 31 December 2025. These new measures would require all rental properties to be a minimum C and above when being let out. While, as with any law change, it still has many hurdles to overcome and may be amended or delayed, as it stands landlords have a little over 30 months to improve the energy rating of under performing properties.
This means it is likely landlords of the vast majority of the Isle of Wight's 14,500 current rental properties will need to take remedial action regardless of the decision last night even if their houses or flats are safely in the D or E bands as it stands today.
Are Listed Buildings Exempt?
There is also some confusion over what this means for listed buildings. Many people think listed Grade I or II buildings are exempt from needing an EPC so this will not apply to them. This is not true. These properties still need an EPC, however the confusion lies in what action can be done should said property need to be more energy efficient.
EPCs are a guidance on a property energy efficiency rating and what measures can be done if the owner chooses, not that they must be done. Listed buildings still need an EPC. If the works being taken still cannot achieve an E minimum (and subsequently a C from 2026 onwards) then the owner would then have a case to speak to the council to seek a formal exemption to the possibility of receiving a fine if they continue to rent out the property.
What the law says in laymen terms is a listed building cannot have works done if they have a detrimental impact to the appearance of the property. Should the owner wish to undertake a single measure or measures, they should seek advice from an appropriate body such as the local planning department. Listed building status does not prevent works of any kind being undertaken, provided it is approved by the relevant bodies.
If you own a rental property and need an EPC or your current EPC is several years old or you have undertaken works since the certificate was produced, you can request a new one at any time. Valerien Property Services accredited by Elmhurst Energy to carry out EPCs on the Isle of Wight. Simply give us a call or drop us a line via the contact page and we will be happy to help you.
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