MEES Regulations: Are You In Breach of Them?
Commercial Landlords are you ready?
It is now less than 6 months to go until existing lettings with an EPC rating of F and G are unlawful.
The Law
The minimum energy efficiency standard regulations (“MEES” regulations) were brought in to improve the energy efficiency of buildings in the domestic and non-domestic private rented sector in England and Wales.
Since 2018, no new commercial leases and lease renewals have been permitted where the minimum energy efficient rating of the building in question is less than an E.
From 1 April 2023, subject to some very limited exceptions, it will be unlawful to continue to let a commercial property which has an EPC rating of F or G.
What Happens If I Am In Breach Of MEES Regulations?
Landlords who are in breach of the MEES regulations will be liable to financial penalties.
The maximum penalty fines under the legislation are as follows:-
- Less than 3 months in breach – Up to either £5,000 or 10% of rateable value to maximum of £50,000
- Over 3 months breach – Up to either £10,000 or 20% of rateable value with maximum penalty of £150,000
- Providing false or misleading information or failing to comply with a compliance notice – Up to £5,000
What Do I Need To Do?
Landlords should review the EPCs for their portfolios and see if they have any properties which are let on an F or G Rating. If they do, they should verify if they can rely upon any of the exemptions to the MEEs regulations.
If not, then Landlord’s need to improve the EPC rating of the property in question before 1 April 2023. When considering any such works, they should be mindful of the proposals below and weigh up whether it is worth doing additional works now to bring the property up to a B rating. They should also look at the terms of their lease, to see if they can recover the cost of any such works via the service charge.
Anything Else I Need To Know About New MEES Regulations?
The Government has intimated that they plan that commercial buildings which are let should achieve an EPC of C by 2027 and a B by 2030.
All Landlords should look at the EPCs for their portfolios now and look at how they can meet these proposed changes and deadlines.
If you have any further queries about the new MEES regulations and your responsibilities as a landlord, contact our commercial property team today.
You can call 01903 229999 or email info@bennett-griffin.co.uk