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17 January 2018

139: How will the minimum energy efficiency standards affect your commercial property?

Did you know that from 1 April 2018 leases of commercial premises will be subject to the minimum energy efficiency provisions (MEES)? This means that:

  • From 1 April 2018, landlords of non-domestic privately rented properties must not grant a tenancy to new or existing tenants if the property has an energy performance rating (EPC) of band F or G (as shown on a valid EPC); and
  • From 1 April 2023, landlords must not continue letting a non-domestic which is already let if that property has an EPC rating of F or G.

Although April 2023 may seem a long way away, landlords should be thinking now about any leases which are granted or bought with a term of six years or more where the energy rating is F or G. From 2023, landlords will be prohibited from continuing to let the property unless energy efficiency improvements are made which raise the efficiency to a minimum EPC rating of E.

Click here to view our briefing ‘How will the minimum energy efficiency standards affect your commercial property?’

What is an EPC?

It may have been a while since you last looked at your EPCs and you might need a refresher in light of the MEES requirements.

By way of reminder, an energy performance certificate (EPC) rates how energy efficient your building is and provides an asset rating for your building rated from A to G.The rating is a measure of the theoretical energy performance that the property could be expected to receive. An EPC also contains a recommendation report for improvements to improve energy efficiency.

Click here to view our ‘Brief guide to EPCs for commercial property’.

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