Minimum Energy Efficiency Standards (MEES) in the Non Domestic Private Rental Sector
Did you know that there are new laws coming into effect from: April 2018, which will affect the non-domestic private rental sector?
From: April 2018 changes to legislation will make it unlawful to agree a new lease or lease renewal for a commercial property with an Energy Performance Certificate (EPC) rating of: Band “F or G”.
The minimum asset rate required will be: “E”.
Six things you need to know
1. MEES (Minimum Energy Efficiency Standards) are now law
2. It is estimated that up to 20% of non-domestic properties in England and Wales have a Band: F or G EPC rating
3. From April 2018. The regulations will be enforced upon the granting of a new lease as well as lease renewals. It will be unlawful to agree a new lease or lease renewal for a commercial property with an Energy Performance Certificate (EPC) rating of: Band F or G
4. From April 2023. The regulations will apply to all privately rented property in scope of the regulations, including where a lease is already in place and a property is occupied
5. The Government has declared their wish to raise those standard further such that the minimum standard is likely to rise to a: Band: “D” by 2025, and a: Band “C” rating in 2030
6. Financial penalties for non compliance could be as much as: £150,000
Key facts
What are the Minimum energy Efficiency Standards?
From April 2018 changes to legislation will make it unlawful to agree a new lease or lease renewal for a commercial property with an Energy Performance Certificate (EPC) rating of: Band F or G.
Who will MEES apply to?
MEES will apply to new lettings and lease renewals on or after the 1st April 2018, the landlord/property owner will need to ensure that the property meets MEES before the lease is granted. However as of: 1st April 2023 all privately rented property will be required to meet MEES.
Who will MEES not apply to?
Properties that do not require an EPC under current regulations will not be required to meet MEES. Moreover MEES does not apply to short lettings (6 months or less) and lettings over 99 years or more.
Are there any penalties for non-compliance?
The financial penalties for not conforming to MEES are quite hefty.
The MEES Regulations will be enforced by: Local Weights and Measures Authorities (LWMA’s).
LWMAs will have powers to impose civil penalties which are set by reference to the properties rateable value.
The penalty for renting out a commercial property for a period of fewer than three months in breach of the MEES Regulations will be equivalent to 10% of the properties rateable value, subject to a minimum penalty of £5,000 and a maximum of £50,000. After three months, the penalty rises to 20% of the rateable value, with a minimum penalty of £10,000 and a maximum of £150,000.
What are the key dates?
April 2018 - The regulations will be enforced upon the granting of a new lease as well as lease renewals.
April 2023 - The regulations will apply to ALL privately rented property in scope of the regulations, including where a lease is already in place and a property is occupied.
Why is it being enforced?
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 exemptions?
Landlords can be made exempt from MEES if they are able to demonstrate one of the following:
They have carried out all cost-effective energy efficiency improvements.
Measures Identified by Green Deal or an alternative government scheme are not cost effective (devalue the property by 5% or more. Or fail to raise the EPC rating above an F)
Or If third-party consents are not available despite reasonable effort.
All of these exemptions are likely to have a time constraint attached to them.
What next?
Given the risks to landlords it is clear that a full understanding of energy efficiency is required for your property assets, in order to see if you are meeting MEES.
How I can help?
I can assess your properties energy efficiency and produce an EPC using: Design Builder which is a 3D building modelling software.
The building can be remodelled several times to determine the most cost effective way of improving your building to ensure that you have understanding of your properties energy efficiency rate.
With this information I can determine the most cost effective improvements for your property to:
Ensure that it achieves an asset rate of: Band “E” or above, thus complying with: MEES Regulations.
If you have any questions regarding MEES, please contact me:
Office: 01752 839422
Mobile: 07817144751
E-mail: info@austines.co.uk