Landlords and Agents Are You Ready for the MEES 1 April 2023 Deadline?

Posted by NRG Focus on 17th January 2023 -

Landlords and Agents are you aware and ready for the Minimum Energy Efficiency Standards (MEES) 1 April 2023 Deadline?

From the 1 April 2023, the MEES Regulations are tightening, and it will become unlawful for a landlord to “Continue to Let” a Sub-Standard property unless they have made all possible cost-effective energy efficiency improvements prescribed by MEES or one of the exemptions applies. 

Currently A Sub-Standard property is defined as a property with an Energy Performance Certificate (EPC) rating of F or G.

With the recent change in Building Regulations and the change in Carbon Factors for the fuel types the property EPC rating may improve with just a re-assessment.

What does this mean for landlords?

Landlords are required by law to ensure their properties meet the current Minimum Energy Efficiency Standards, currently commercial properties must hold an EPC rating of an E or better prior to any new lease or renewal lease being granted, the 1 April 2023 legislation will include properties where the lease are mid-term.

Failure to comply does not affect the validity of any lease which is granted but landlords who are in breach of the MEES regulations will be liable to a civil penalty. There is a publication penalty and potentially significant financial penalties for leasing a non-compliant property. These financial penalties can be imposed to an amount not exceeding £5,000 in relation to domestic property and not exceeding £150,000 for non-domestic property.

What are landlords Options?

• Check your current EPC rating and when it expires, is it of a band E or better
•  If the lease is due to expire after 1 April 2023 and the rating is not the minimum rating check if you have the legal right to access the property to undertake improvements to increase the EPC rating.
• If the property is below the minimum rating, contact the current tenant to arrange a review of the EPC.
• Review the current lease to establish whether any improvement costs incurred in achieving the minimum rating can be recovered from the tenant.

Moving Forward past 2023 (The only way is Up)

The Government released a White Paper in 2020 suggesting that all Commercial Properties should achieve an EPC rating of a B or higher by 1 April 2030

2021 the Government launched a consultation on the 2030 deadline proposing that the minimum EPC rating should raise incrementally, with an interim rating of a minimum C by 1 April 2027.

EPC Exceptions and potential exemptions

MEES regulations impose restrictions on lettings, but subject to exceptions. All non-domestic property will be included unless the property:

• Is not legally required to have an EPC
• Is let on a tenancy granted for a term of 99 years or more
• Is let on a tenancy for a term of 6 months or less (unless the tenant has already been in occupation for 12 months or more or there is provision for extending the term).

Related articles;

What safety certificates do landlords need?

How Will Changing EPC Ratings Affect Landlords?

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