Minimum Energy Efficiency Standards from 1 April 2018
New regulations known as the Minimum Energy Efficiency Standards (MEES) provide that From 1 April 2018, it will be illegal for a landlord to grant a new lease of commercial premises having an EPC rating of ‘F’ or ‘G’.
However even if premises are caught by MEES, they may still be capable of being let if they fall within one of a number of exemptions which include
(i) the recommended improvements do not pay for themselves in energy savings over a 7 year period and
(ii) if making the energy improvements would reduce the value of the premises by more than 5%.
If an exemption applies, the landlord must register the exemption on a central register and once registered, the exemption will be valid for 5 years.
The penalties for non-compliance include a civil penalty of up to £150,000 and the landlord’s details being put on a ‘name and shame’ register.
Current estimates suggest that around 18% of commercial properties have an ‘F’ or ‘G’ rating.