Minimum Energy Efficiency Standards (MEES) Regulations: An Introduction for Commercial Landlords
Until now, energy performance regulations have done little more than require commercial landlords to obtain an EPC. However, this is set to change with the implementation of the minimum energy efficiency standards (MEES).
The new regulations introduce strict requirements on commercial landlords, with potentially heavy penalties for non-compliance. The changes brought about by the MEES Regulations will be implemented in a number of phases. The key dates are: From 1st April 2018 landlords of buildings that are covered by the MEES Regulations must not renew existing leases or grant new leases unless the building has an EPC rating of E or above, unless an exemption applies and the landlord registers that exemption. From 1st April 2023 commercial properties which are subject to an existing lease must not continue to be let unless they meet the MEES of band E.
Which properties are covered by the MEES Regulations?
Not all commercial properties will be covered by the new regulations and a number of exemptions will apply.
What are the exemptions?
If your property does fall under the scope of the MEES Regulations, there are a number of exemptions to the requirement to bring the property up to the MEES. The most notable exemption is the so-called “Golden Rule”: the works required to bring the property up to the MEES must be expected to pay for themselves within 7 years. Other exemptions relate to listed buildings, potential devaluation of the property, the landlord’s inability to obtain necessary consent for the works, and the potential negative impact of the works on the fabric of the building. It is important to remember that most of the exemptions must be registered by the landlord with the national PRS exemptions register to avoid falling foul of the MEES Regulations.
The MEES regulations will be enforced by Trading Standards and Landlords who act in contravention of the MEES Regulations may be liable to a fine of up to £150,000.00 or 10% of the rateable value of the building.
For more information or if you have any questions please contact Roger Chadwick on 01935 846000 or email email@example.com