Commercial Property – Energy Performance

Minimum Energy Efficiency Standards (MEES) regulations.

From 1st April 2023, it is unlawful for a landlord to continue to let commercial premises with an EPC rating of F or G unless they have a valid exemption registered. By failing to comply with the regulations, a landlord risks incurring a financial penalty and the breach being publicised.

Although landlords of commercial premises who have a valid EPC of “E” or above are safe for now, the government has consulted on plans to raise the minimum standard from “E” to “C” by 2027 and then raising the minimum further to “B” by 2030.

As such, with the green agenda very much on the Governments manifesto, Landlords need to be planning now for future compliance with the regulations, as standards will inevitably rise.

In particular, landlords may need to start:

1) identifying any sub-standard properties within their portfolio;

2) considering the optimum time for any necessary energy efficiency works to be carried out and how to fund them;

3) apportioning responsibility within leases for compliance with MEES / carrying out necessary energy efficiency works and

4) considering whether any exemptions may apply

Landlords need to remember and appreciate, just because they have let a property out (whether on a short term or long term basis) they are not released or absolved from their responsibilities in relation to Energy Efficiency.

If you would like any advice or assistance on this or any other Commercial Property matters, please contact Mohammed Rahman at [email protected] or one of the other members of the Commercial Team on 01604 622101