Privately Rented Non Domestic Properties

Have you heard about the minimum energy  efficiency standard (MEES) affecting  commercial landlords and property owners?


Who does it affect and when?
From the 1st April 2018, MEES regulations will apply to landlords / property owners upon the granting of a lease to a new tenant and lease renewals to existing tenants.

In order to comply, all properties must meet MEES by undertaking  permissible, appropriate and cost-effective improvements, unless exempt.

The regulations will apply to all privately rented properties within  the scope of the regulations from the 1st April 2023.

What are the MEES?
Under the Energy Efficiency (Private Rented  Property) (England and Wales) Regulations  2015, it is unlawful to grant a new lease or  tenancy on commercial properties which have  an Energy Performance Certificate (EPC) rating  of F or G after April 2018.

The legislation was put into place to meet  obligations to improve energy efficiency  in inefficient properties under the Energy  Act 2011, and to meet UK targets of CO2  reduction.

Are there any exceptions?
Properties which are let on tenancies of more than 99 years and less than 6 months.

Any properties which have been exempt from having an EPC.

Are there any exemptions?

Exemptions may apply when:

• Improvements are not cost-effective, for example, within a 7 year period

• Improvements are likely to reduce the value of the property by 5% or more, or in some circumstances, damage the property

• Third party consent cannot be obtained for the required improvements

• Exemptions must be registered on the PRS Exemptions Register, which is available from October 2017.

Please be aware,  exemptions may have associated time constraints.

What are the penalties?
Fines of up to £150,000 can be enforced, which are dependent on the type of infringement and  the length of non-compliance.

Next steps
If you are an active NDEA member and have clients who have  interests in the privately rented sector, inform them about the  regulations and changes to energy efficiency standards.

Speak to our technical team on 0845 621 11 11 (ext.610).

Things to remember:
They will need an EPC before the next time they let out a property EPC rating may have decreased since improved building regulations. They must be able to achieve an E rating, OR can achieve an E rating by 2018 if a new lease/tenancy is required.

For more information, please contact: | | 0845 621 11 11