Energy Efficiency – Sub-Standard Buildings

Draft Regulations setting out Minimum Energy Efficiency Standards (MEES) have been published by the Government. The regulations categorise any building with an energy performance rating of F or G as “sub-standard”. The proposals set out requirements for properties to be brought up to an E Rating.

MEES will apply to new lettings from 1st April 2018 and to existing leases from 1st April 2023. The only properties exempt from this will be those that do not need an Energy Performance Certificate under the current regime.

There are exemptions for Landlords after all possible cost effective improvements have been carried out, if third party consents are not available or if compliance would devalue the property by 5% or more.

Penalties for a breach of these regulations of up to £150,000 will apply. It is unclear whether Local Authorities will be permitted to keep the proceeds.

These regulations described above apply to commercial properties (not residential). It is generally in the interests of Landlords and Tenants for buildings to be as energy efficient as possible in these days and we are already seeing Pension Fund adopt these proposals rejecting any new properties falling under the threshold. If Landlords require further advice, they are welcome to contact Robert Keeves, Associate Partner, Underwoods (Lease Advisory) (rk@underwoods.co.uk or 01604 404060).

Robert Keeves

01604 774143

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Energy Efficiency – Sub-Standard Buildings

Draft Regulations setting out Minimum Energy Efficiency Standards (MEES) have been published by the Government. The regulations categorise any building with an energy performance rating of F or G as “sub-standard”. The proposals set out requirements for properties to be brought up to an E Rating. MEES will apply to new lettings from 1st April […]