A huge congratulations to Evie for completing the Royal Parks Half Marathon on Sunday 11 October!
MEES regulations, or the Minimum Energy Efficiency Standards, set the benchmark that commercial property leaseholders need to meet to let their property.
Currently, the minimum energy standard is EPC E for all let properties, with landlords facing penalties of up to £5,000 for premises rated F or G.
However, the Government may soon require all commercial rented buildings over 1000 square metres to reach an EPC B rating by 2031.
When acquiring your next commercial property, make MEES compliance a cornerstone of your due diligence, as tightening regulation may leave you exposed to additional retrofit costs and penalties.
The risks of a low EPC rating
Acquiring a non-compliant commercial property can quickly become expensive.
Aside from inheriting the costs of upgrading insulation, HVAC systems or lighting, MEES-related problems can sometimes impact net returns and investment appraisals.
Continuing to let or grant new leases for properties with a non-compliant EPC rating, unless a valid exemption exists, can also result in significant local authority fines.
Properties showing F or G ratings with no registered exemption will likely be targeted for investigation, leading to compliance notices, requests for information and potential civil penalty notices.
Where a local authority finds commercial premises in breach of the regulations, penalties for each breach are as follows:
- Letting a property in breach of regulation for less than three months – Maximum £2,000 penalty
- Letting a property in breach of regulation for three months or more – Maximum £4,000 penalty
- Providing misleading or false information – Maximum £1,000 penalty
- Maximum per-property penalties of up to £5,000
Local authorities can also publicly list details of confirmed breaches on a register for up to 12 months, ‘naming and shaming’ landlords who are non-compliant.
Speak to a solicitor
MEES compliance should form an integral part of any property transaction, so our solicitors can review the EPC status of a property and identify any potential compliance issues before you make a purchase.
We incorporate MEES compliance into our detailed due diligence processes, helping you invest in commercial property that won’t lead to extra costs further down the line.
In the market for a commercial property? Speak to our solicitors for expert guidance on MEES compliance.
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