Expanding MEES in private rents: RICS responds to government announcement

RICS welcomes the opportunity to shape proposals aimed at improving the energy performance of privately rented homes in England and Wales and the plans to expand Minimum Energy Efficiency Standards.

Key Proposals in the Government's Consultation:

• Raising Minimum Energy Efficiency Standards: The government proposes to elevate the minimum energy efficiency standard for privately rented homes to an Energy Performance Certificate (EPC) rating of C by 2030.
  Implementation Timeline: A phased approach is suggested, with interim milestones to ensure gradual compliance, allowing landlords adequate time to plan and execute necessary improvements.
• Cost Cap Adjustments: The consultation discusses revising the cost cap for required improvements, aiming to balance the financial impact on landlords while ensuring meaningful energy efficiency gains.
• Exemptions and Flexibilities: Consideration is given to specific exemptions, such as affordability constraints and situations where certain properties may face challenges in achieving the proposed standards.

RICS supports initiatives that enhance the energy efficiency of homes, contributing to the nation's net-zero objectives. However, we recognise that these proposals emerge amidst ongoing reforms to the EPC framework, with the government yet to commit to how any future EPC data is reported and presented to consumers. It is crucial to ensure that any changes are delivered in a clear, understandable, and measurable manner, facilitating targeted improvements. This avoids a repetition of challenges seen under the previous government who ultimately had to postpone plans to expand MEES. 

This consultation coincides with significant transformations in the Private Rented Sector (PRS), including the Renters' Rights Bill and the expansion of the Decent Homes Standard. It is imperative that the Decent Homes Standard and MEES are harmonised, providing landlords with sufficient timelines and support to implement necessary changes effectively.

Under previous MEES proposals, RICS observed a positive shift among landlords towards acquiring more environmentally friendly properties and undertaking essential upgrades. It is essential to continue this momentum while ensuring that the new standards do not adversely affect PRS supply or result in stranded assets.

To support these efforts, RICS has introduced the Residential Retrofit Standard. This standard offers a comprehensive framework for delivering high-quality retrofit advice, safeguarding consumer interests and promoting best practices within the industry.

RICS remains committed to collaborating with our members, landlords, and tenant representatives to shape a balanced response. RICS will work over the coming weeks to develop our consultation response, ensuring proposals create more energy-efficient homes while minimising market disruption, ensuring a sustainable and prosperous future for the housing sector.

If you would like to feed in any insight, please email Sam Rees, RICS Interim Head of Public Affairs UK&I on srees@rics.org