Commercial Landlords and Tenants: Get ready for the MEES changes

The rules on minimum energy efficiency standards (MEES) are changing again. Currently, granting a commercial lease is unlawful unless the property has an EPC rating of "E" or higher. From 1 April 2023 the MEES requirements will also apply to existing leases.

Is compliance necessary?

Breaches are enforced by Trading Standards with fines of up to £150,000. There could also be reputational risks.

Exemptions

There are various exemptions including the consent exemption, devaluation exemption, all improvements made exemption, and 7 year payback exemption. Exemptions must be registered on the national PRS exemptions register.

Future changes

The Government is considering raising the minimum rating to C by 2027 and B by 2030.

What should landlords do?

Carry out a review of your property portfolio and identify any properties with F or G ratings. Consider works to improve efficiency or whether exemptions apply.

For more information please contact Sabina Haag on 01502 532323 or sahaag@nicholsonslaw.com.

This is not legal advice; it is intended to provide information of general interest about current legal issues.