Next EPC Deadline for buy-to-let landlords
All buy-to-let landlords will be called to meet new Minimum Energy Efficiency Standard (MEES) on April 2020. The regulation which was first applied in April this year did not automatically apply to all landlords, depending on the type of tenancy in place.
However, from 2020, all existing lets will need to comply with the MEES requirements, meaning all rental properties will have to have an EPC rating of E or above. If a rental property fails to comply with the new efficiency test criteria, it will not be appropriate to remain on the rental market and landlords will face fines of up to £5,000.
Surprisingly, only 25% of landlords were aware of the MEES regulation in April 2017 and 42% admitted to being “only vaguely aware”. As a result, one in 20 properties did not meet the criteria until October 2017 and tenants were overpaying on their energy bills the amount of £13 million per month, according to AXA.
Managing director of AXA Direct, Gareth Howell, stated: “When we look at our surveys of tenants and landlords over the past five years, we see progress across the board on security, maintenance and numbers with proper tenancy agreements in place”.
Landlords can seek help on how to improve the energy efficiency of their properties from the Department for Business Energy and Industrial Strategy, which has launched a guidance document on compliance with the 2018 “Minimum Level of Energy Efficiency” standard. There are also numerous financing options available to fund the necessary improvements.
As the rental demand continuously rises, landlords should be prepared to comply with the MEES, as this two-year deadline may be a ticking time bomb.
Here at Discount Landlord, we provide a range of specialist insurance products to help you protect your investment.
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