How much will domestic landlords need to spend on energy improvements?

In December 2017, we reported on the consultation on the domestic aspects of MEES Regulations. At the end of July, the summary of responses to the consultation was released.

84% of respondents support a requirement for landlords to spend money in improving sub-standard properties. However, there is less of a consensus about the level of the contribution. The consultation had proposed that landlords be required to spend up to £2,500 per property on carrying out energy efficiency improvements, with any sum obtained by way of third party funding to be included within this £2,500 limit. 79% of those who responded disagreed with the proposed figure, some thinking it was too high, others too low, and some suggesting that it should be linked to rental income. It seems clear that the current position, where landlords of domestic properties can benefit from an exemption if works cannot be wholly financed without any cost to the landlord, is set to change. How much domestic landlords will need to pay remains to be seen.

We are expecting the government's response to the issues raised in the consultation responses, together with amending regulations, to be released in the autumn. The changes will apply from 1 April 2019.