On 5th November 2018, Energy Efficiency (Private Rented Property) (England and Wales) Regulation 2015 (SI 2015/962) (MEES Regulations 2015) was amended in regard to domestic properties.
The amended regulation will apply on the grant of a new tenancy to a new tenant or existing tenant.
This amendment intends to remove the “no cost to the landlord” principle by April 2020 which held that a landlord is only obliged to make improvements to energy efficiency (to meet the minimum standard) if that does not involve any costs to the landlord.
It will now be substituted with a Landlord Financial Contribution element. Landlords will be put under an obligation to carry out works to remain in line with current regulatory requirements, reaching an E rating. This will be capped at £3,500 (including VAT) and a landlord who does not reach an E rating after contributing £3,500 would be entitled to register an exemption.
The MEES guidance will be updated in due course.