The Energy Efficiency (Private Rented Property) (England and Wales) Regulations set out the minimum level of energy efficiency for private rented non-domestic property in England and Wales, known as the Minimum Energy Efficiency Standards. The new legal standard makes it unlawful to lease all privately rented commercial properties or permit lease renewals unless the building can achieve an EPC rating of E or above.
WHAT IS THE MINIMUM ENERGY EFFICIENCY STANDARDS (MEES)?
The new standards which passed in March 2015 are a directive originating from the Energy Act 2011, which requires new regulations to be introduced to increase the energy efficiency of private rented non domestic buildings situated in England and Wales.
Part 3 of the Energy Efficiency (Private Rented Property (England and Wales) Regulations contains the minimum level of energy efficiency provisions, which are currently set at energy performance certificate (EPC) rating of band E. This means that all privately rented non-domestic buildings that achieve a rating of F or G will be affected by the new standards and their energy rating will require improvements to meet the new requirements.
WHEN WILL MEES BE IMPLEMENTED?
Implementation of the Regulations is to come into effect in the following stages:
From April 2018, the regulations trigger an enforcement mechanism that will apply to all privately rented non-domestic buildings. The new legal standard makes it unlawful to lease all privately rented commercial properties or permit lease renewals unless the building can achieve an EPC rating of ‘A’ through to ‘E’.
From April 2023, all leases of private rented properties that commence before 1st April 2018 must comply with the MEES regulations.
WHY ARE THE MINIMUM ENERGY EFFICIENCY STANDARDS BEING INTRODUCED?
The government has identified the built environment as a major contributor to Greenhouse Gas emissions which directly affects the United Kingdom’s target to reduce carbon emissions by 2030.
The government estimates that 18% of commercial properties across the UK hold EPC ratings of F or G, and as such the new minimum energy standards aims to improve the EPC ratings of England and Wales commercial building stock, to tackle Greenhouse Gas emissions.
HOW CAN BRADLEY-MASON LLP HELP?
Our experience and technical knowledge enables us to confidently advise on the impacts of the new standards in relation to your specific scenario.
Pre-acquisition advice and implications of lease and purchase deals;
Design and specification of improvement works;
Project management of improvement works;
Overseeing Landlord improvement works.
For further information on the Minimum Energy Efficiency Standards please click here.