Have you heard about the minimum energy efficiency standard (MEES) affecting commercial landlords and property owners?
Who does it affect and when?
From the 1st April 2018, MEES regulations will apply to landlords /
property owners upon the granting of a lease to a new tenant and
lease renewals to existing tenants.
In order to comply, all properties must meet MEES by undertaking
permissible, appropriate and
cost-effective improvements, unless exempt.
The regulations will apply to all privately rented properties within
the scope of the regulations from the 1st April 2023.
What are the MEES?
Under the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015, it is unlawful to grant a new lease or tenancy on commercial properties which have an Energy Performance Certificate (EPC) rating of F or G after April 2018.
Why?
The legislation was put into place to meet obligations to improve energy efficiency in inefficient properties under the Energy Act 2011 and to meet UK targets of CO2 reduction.
Are there any exceptions?
- Properties which are let on tenancies of more than 99 years and less than 6 months
- Any properties which have been exempt from having an EPC
What are the exemptions?
Exemptions may apply when:
- Improvements are not cost-effective, for example, within a 7 year period
- Improvements are likely to reduce the value of the property by 5% or more, or in some circumstances, damage the
property - Third party consent cannot be obtained for the required improvements. Exemptions must be registered on the PRS Exemptions Register, which is available from October 2017. Please be aware, exemptions may have associated time constraints.
What are the penalties?
Fines of up to £150,000 can be enforced, which are dependent on the type of infringement and the length of non-compliance.
Next steps
If you are an active NDEA member and have clients who have interests in the privately rented sector, inform them about the regulations and changes to energy efficiency standards. Speak to our technical team on 0845 621 11 11 (ext.610).
Things to remember:
- They will need an EPC before the next time they let out a property
- EPC rating may have decreased since improved building regulations
- They must be able to achieve an E rating OR can achieve an E rating by 2018 if a new lease/tenancy is required.