Landlord Energy Tax: £3’500 Cost Cap Announced for MEES

The Government have capped energy efficiency measure costs to £3'500 but is that going to be enough?

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Energy Performance Certificate

Last year, minimum energy efficiency standards (MEES) came into force requiring landlords to ensure their energy efficiency rating is E or above for all property let after the law came into force; it doesn’t affect tenancies already in place at the moment and the regulations will come into force for all existing tenancies on 1st April 2020, just over a year from now.

Those with properties that are rated F or G will be expected to pay a maximum of £3’500 from 1st April 2019 to improve the energy efficiency rating of the property to comply with MEES.

Most landlords will be fortunate to already have MEES compliant properties and therefore will be unaffected by this announcement as MEES has been in force since 1st April 2018 and for those who find it impossible to comply with MEES can apply for an exemption which lasts up to five years before having to be applied for again.

Where upgrades are necessary, the average cost to improve an F or G rated property to a band E is expected to be around £1’200 – far below the upper ceiling being brought forward under new regulations. Examples of measures include: installing floor insulation, low energy lighting or increasing loft insulation. If upgrades will cost more than £3’500, landlords will be able to register for an exemption.

You can read more on the RLA website but Harry Albert Lettings & Estates are on hand to assist you in improving the energy efficiency of your buy to let investments and your own home with grants available for new boilers, free insulation, replacement storage heaters and more! Just get in touch on 0116 321 4970.

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