From April 2018 any energy performance certificates for commercial and residential properties must align with new regulations under the Minimum Energy Efficiency Standard (MEES), which was agreed in March 2015.

Currently all commercial buildings have an energy efficiency rating that runs from A - G. With F and G being the lowest performing ratings. The new regulations are introducing a minimum standard of E meaning that commercial buildings cannot be let or existing tenancies cannot be renewed unless they meet the required standard.

Furthermore after the 1st April 2023, landlords are not able to let any buildings which have an EPC rating of less than E, unless the landlord registers an exemption.

18% of commercial properties in the UK have been highlighted as holding an EPC rating of F or G, and are therefore a major contributor to Greenhouse Gas emissions. Landlords of these properties are likely to face financial implications as they may have to invest funds in order to ensure that they meet the new required EPC rating. Further cost may also then be incurred if they are unable to rent the property out during this time.

MEES will not apply to landlords in certain circumstances, for example if a tenancy is less than 6 months and cannot be renewed, if the tenancy is over 99 years or when a building has an EPC that is 10 years or older.

Carter Jonas advise that landlords review their properties and leases now to check they are in line with the new energy efficiency standards. On February 23rd the government released a guide for landlords which explains the regulations in more detail.

If you would like to discuss how the changing legislations will affect you, please contact a member of our team.