The Minimum Energy Efficiency Standards (MEES) Regulations have now been passed into law.
MEES Regulations apply to both residential and commercial property, but they affect commercial properties in the following ways.
1. MEES require a property
to be brought up to a minimum EPC rating of ‘E’ and any rating below this is termed “substandard”.
2. MEES apply to the grant of
a lease on or after 1 April 2018, including lease renewals where an EPC exists. In certain circumstances, the landlord will have six months after the lease is completed to comply with the regulations in the event that the landlord had no choice whether to
grant the lease.
3. From 1 April 2023, the legislation will be extended to existing leases, regardless of when the lease was granted but only in the event
that the property had an EPC on the relevant date.
4. Properties that do not need an EPC (either under the EPC regulations or building regulations) are
not within the MEES regime. The MEES regulations also do not apply to short lettings or to lettings of 99 years or more.
5. Landlords are exempt from reaching
the minimum standard for 5 years if they have carried out all possible cost-effective improvements. Whether or not this standard has been reached may be established by using the Green Deal’s “Golden Rule” or under a new provision that requires
improvements to pay for themselves within no more than 7 years. Guidance is due to be provided in this area by the Department of Energy & Climate Change (“DECC”).
6. Landlords will be exempt for a period of 5 years if they cannot obtain a necessary consent from a third party, or if compliance would devalue the property by 5% or more.
7. Exemption from MEES will not transfer to a buyer. From 2023 a successor landlord of a substandard property will either need to bring the property up to an ‘E’ rating within 6 months of acquisition, or establish
a new exemption.
8. Exemptions will need to be logged on a register with the DECC. A centralised register will log evidence of a landlord’s exemption
from MEES. This will be a public register which will identify which buildings are substandard.
9. Enforcement will be dealt with by authorities and the
penalties for breach could be up to £150,000.
10.The government will review MEES in 2020.
At Construction Assessment Services we can help you meet these requirements and with our guidance not all improvements need to be excessively intrusive or costly.
Each property will perform differently depending on a large number of factors and as experts in this field we can guide you on the most cost effective and appropriate form of enhancement.
We would carry out a full survey of the building and following an appraisal of the results provide you with a proposal to bring the building into compliance, you may wish to follow a different route in which case
we could evaluate your preferred option and ensure it meets the requirements.
Following completion of the works and on receipt of the
required evidence the revised EPC would be issued.