Search

How can we help?

Icon

Complying with MEES: Improve your EPC rating before the deadline

Minimum Energy Efficiency Standards (MEES) are regulations aimed at improving energy efficiency standards in properties – this article relates to commercial properties only under the MEES regime, the EPC rating of a property is crucial if you want to grant a lease. Since 2018, commercial properties are required by law to have an EPC rating between A and E and forms part of the government’s aim to be carbon neutral.

The upcoming and key deadline for landlords is 1 April 2023. Landlords must make sure that all properties with a current EPC certificate have a rating between A to E before 1 April 2023. This legal obligation also applies to all existing leases granted to tenants before 1 April 2018. For instance, if a landlord granted 10-year lease in 2016 of a property with a sub-standard EPC rating, they will be required to improve the rating, even if there is no change in tenancy. Compliance with the current MEES regime is important. Failure to comply will attract financial penalties ranging from £5,000 to £15,000. Furthermore, there will be publications about landlords who fail to comply with their obligations.

Landlords can prepare for the deadline by reviewing the EPC rating of their properties on the national EPC register. The website will show landlords the current EPC ratings of their properties and when the certificate is going to expire.

Keeping pace with the changes is crucial and landlords must make their obligation under the MEES regime a priority.

 

Landlords can also prepare for the deadline by checking if a property is exempt under the MEES regime. Some exemptions include:

  1. All possible improvements have been made: landlords can rely on this exemption if they have carried out all relevant improvements or cannot make any improvements to change the sub-standard rating of the property;
  2. If a landlord has used all reasonable efforts to obtain consent and cannot gain such consent from any relevant third parties (such as the local authority) or the tenant to carry out the necessary EPC improvements;
  3. If a landlord has received a surveyor’s report which concludes that any improvements would devalue the property’s market value by 5%;
  4. If someone has just recently become a landlord, they can benefit from a temporary exemption as it will be unreasonable to expect the landlord to comply with MEES regulations instantly. This temporary exemption last for 6 months.

The exemptions come with complex and ongoing conditions: they last for 5 years and require registration on the PRS Exemptions Register.

Landlords should also be aware that the government aims to increase the minimum standard of EPC ratings in the future: by 2027, the government intends to raise the standard of EPC ratings to a C and then achieve a rating of at least B by 2030. Keeping pace with the changes is crucial and landlords must make their obligation under the MEES regime a priority.

About this article

Disclaimer
This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full General Notices on our website.

About this article

Read, listen and watch our latest insights

Pub
  • 22 September 2023
  • Employment

Talking Employment Law: New family friendly rights

In this first podcast in the ‘Talking Employment Law’ series, Lucy Densham Brown and Rebecca Dowle, members of the employment team summarise some of the big new family-friendly Bills that are working their way through parliament.

art
  • 07 September 2023
  • Employment

Birmingham Council Equal Pay Claims – How did it go so wrong?

This week, Birmingham City Council formally declared itself in financial difficulty. It issued a Section 114 Notice which states that it has insufficient resources to meet its expenditures and is unable to agree on any solution which would provide suitable funding.

art
  • 21 August 2023
  • Employment

Ethnicity Pay Reporting: Government response to the consultation

The Government consulted on a mandatory approach to ethnicity pay reporting in 2018. Which sought views on the benefits of gathering, monitoring and publishing ethnicity data; data handling, amongst other key areas.

art
  • 09 August 2023
  • Employment

A Guide for Employers: Hidden Disabilities in the Workplace

As an employer, identifying and supporting those with hidden disabilities may present unique and complicated challenges, and so we have put together this guide for employers to aid in this complex area. 

art
  • 04 August 2023
  • Employment

Flexible Working Requests: New law

Flexible working is a common occurrence in workplaces in the UK now, with many employees job-sharing, working from home, working flexible hours and more.

Pub
  • 27 July 2023
  • Employment

TUPE Podcast Series: Service Provision Changes – Organised grouping and principal purpose

In this third podcast in the TUPE Podcast Series, Amanda Glover will focus on another key element of a service provision change.