MEES and EPC rules are changing - Landlords should ACT NOW to avoid a £50k fine!
Will the new EPC Regulations for commercial properties affect me?
Anyone who lets a commercial property will be subject to the new regulations coming into force 1st April 2023. There are only a few, very limited circumstances under which an exemption can be sought.
What are Energy Performance Certificates (EPCs)?
An EPC shows how energy-efficient a property is. They are prepared by qualified assessors and include information about estimated energy costs and a summary of a property’s energy performance. It also includes recommendations for works that would make a property more energy-efficient, along with the estimated costs and the potential savings that could be made as a result. Properties are rated between A – G; A being the most energy-efficient and G being the least.
Each EPC lasts for 10 years but may need to be updated if major works are carried out during that period.
What are Minimum Energy Efficiency Standards (MEES)?
The MEES Regulations set out the minimum level of energy efficiency for non-domestic private rented properties in England and Wales. Before April 2023, landlords of non-domestic private rented properties could not grant a tenancy to new or existing tenants if their property has an EPC rating F or G.
However, from 1st April 2023, the MEES Regulations will be stricter.
Landlords must not continue to let a non-domestic property which is already let
if that property has an EPC rating of F or G
This means that works will need to carried out to potentially thousands of buildings
to bring them up to the E rating required.
What happens if my building does not meet the MEES?
If a landlord continues to let a property that does not meet MEES then they could face fines of up to £50,000. Whilst we do not know how the regulations will be applied or enforced at the time of writing this post, one thing we can say for certain is that a sub-standard EPC rating will have a negative effect on a property’s value. It may also be difficult to obtain a mortgage or use it as security. These are practical problems that will cost owners of commercial properties.
What should owners of commercial buildings do?
First, they should check whether their building has an up-to-date certificate. This can be done using the free government website.
If the building is rated F or G, they should speak to a property expert now to find out what their responsibilities are. Lawson West have an experienced team of commercial property lawyers who can help you understand your obligations. For example, are there any exemptions that apply or does the wording of a lease allow for any works?
Owners should still contact us even if a building is currently compliant as it is expected that properties will need to have an EPC rating of C or above from April 2027 (possibly increasing to a rating of B by April 2030).
Our lawyers have years of experience dealing with commercial property issues and regulation compliance.
Contact Us here for more information or assistance.
Rebecca Beswick, Director and Head of Commercial Property
Lawson West Solicitors, Leicester
This article is not intended to be legal advice and cannot be relied upon or applied to any set of circumstances. For further guidance, please contact Lawson West Solicitors Limited.
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