From 1st April 2023 a revision to the current energy performance regulations will come into force, following on from which it is anticipated that we will see the start of number of changes over the next few years, creating more onerous obligations on both landlords and property owners with regard to the Minimum Energy Efficiency Standards (MEES).

Current Requirements

A commercial EPC is currently required when a property is sold, let, an existing lease is renewed or extended if regeared prior to contractual expiry, or indeed if there have been alterations to the existing heating system, or where alterations to the property have created either an extension or a reduction in the size of the property due to demolition and associated refurbishment work.

Under current obligations, an EPC must achieve a minimum requirement of an E rating and will be valid for 10 years, unless one or more of the events as indicated above, takes place.

The current regulations also set a deadline of 1st April 2023, which is fast approaching, at which point a minimum E rating is required on all leased buildings that have an EPC (or should have an EPC) irrespective of when the lease was granted.

Proposed Changes

The Government is consulting on the following proposed changes:

2025: All leased properties will need a valid EPC if there is an existing lease that has an expired EPC, a new one will be required.

2027: Current projections suggest that all lodged EPCs will be required to achieve a minimum C rating.

2030: Further changes are anticipated aimed at targeting a minimum B rating.

What happens if the property is not compliant with new regulations?

A fine system is currently in place based on the rateable value of the property, up to a maximum level of £150,000

How can we assist?

With our team of Level IV accredited Commercial Energy Assessors, we are able to undertake a detailed review of your property and the existing certificate, providing advice with regard to how the proposed targets can be met together with the various options that are available to you, to ensure economical compliance with the changes to the minimum requirements.

Our in-house building surveyors can plan and manage any works required on your behalf liaising with occupiers where necessary. On let property, our dedicated lease consultancy specialists can steer you through the ambiguities and misnomers of MEES during lease renewal or regear discussions.

Get in touch with David Fairley for further info and support.