Minimum Energy Efficiency Standard Regulation: where are we at?

Our real estate team provides an update regarding minimum energy efficiency standards, and where it leaves landlords and tenants.

We previously reported on the Minimum Energy Efficiency Standard (MEES) Regulations 2023 updates back in May 2022.

From 1 April 2023, commercial properties must have an Energy Performance Certificate rating of at least ‘E’. From this date, it became unlawful for a property to be let – or continue to be let – at ‘F’ or ‘G’ rating. Failure to comply with these standards could lead to fines of £150,000.

As part of the ongoing targets to reduce UK emissions, the government had previously proposed that the minimum energy efficiency standard would be raised to ‘B’ by 2030 with an interim rating of ‘C’ required by 2027.

However, following the prime minister’s autumn announcement that energy targets were being scaled back, the government announced that the previous proposed timelines will need to be updated to allow sufficient lead in time for both landlords and tenants. Therefore, while we are likely to see an increase in the minimum standards of energy efficiency for commercial properties, this will no longer be as soon as previously anticipated.

As further updates on the MEES standards for commercial properties are issued by the government, our real estate team will continue to ensure that both landlords and tenants are aware of key dates.

We can advise and support on engaging with existing occupants of properties where works need to be done, or ensuring that existing and/or new leases include relevant EPC provisions. Please do get in touch, we’d be happy to help.

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