MEES

The regulations

The Minimum Energy Efficiency Standards or “MEES” came into force in 2018 and these regulations currently prevent a landlord letting a commercial property with an Energy Performance Certificate (EPC) rating of F or G, unless an exemption applies.

From 1 April 2023, even existing leases became unlawful if the rating is F or G. The latest requirement is for commercial properties to have a C rating by 2028 and B by 2030.  So if the EPC rating of a property is below C by 2028 it cannot be rented or leased to a tenant.  To do so could attract substantial fines, the maximum is £150,000.

It has always been clear that the minimum grade E threshold would be raised. Tough action is seen as essential if the UK is to meet its carbon reduction targets. The government estimates that its target of a minimum grade B by 2030 would increase the proportion of commercial properties which currently fail the MEES test from the current 10% to a whopping 85%.
What Next

FAQ’s

From April 2018 changes to legislation made it unlawful to agree a new lease for a commercial property with an Energy Performance Certificate (EPC) rating of F or G.

MEES applies to new lettings and lease renewals since the 1 April 2018, the landlord/property owner will need to ensure that the property meets MEES before the lease is granted. However, from 1 April 2023 all privately rented property had to meet the requirements of MEES.

Properties that do not require an EPC under current regulations will not be required to meet MEES. Moreover MEES does not apply to short term letting (6 months or less) and lettings over 99 years or more.

April 2018 – The regulations came into force for the granting of a new lease as well as lease renewals. From April 2023 – The regulations applied to ALL privately rented property in scope of the regulations, including where a lease is already in place and a property is occupied.

The Energy Act 2011 contains a number of provisions that will affect  owners of property; the most significant of these is MEES, which aims to improve the energy efficiency of the most energy inefficient      properties.

MEES also contributes to the UK legislative targets of reducing CO2 emissions for all buildings to around zero by 2050.

Are there any penalties for non-compliance?

Financial penalties for non-compliance are linked to the rateable value  of the property, but could be as much as £150,000.