MEES - Minimum Energy Efficiency Standards
What it means to you.
As of April 2018, the new MEES regulations will come into effect. This means that private landlords will no longer be allowed to grant or renew a lease of more than 6 months if their commercial property has an EPC rating of E or G.
MEES will apply to all commercial properties rated E or G unless :
- They do not require an EPC
- The tenancy is under 6 months
- Tenancy greater than 99 years
" Recent studies have found that up to 20% of properties currently rated as an E would be
re-rated as an F or G under the latest calculation methodologies."
When is this happening?
Arpil 2018 - all privately rented domestic and commercial properties cannot be let to a new tenant or renewed to an existing tenant unless the property is better than an E or G.
April 2020 - As above and even when there are no changes in domestic tenancy.
April 2023 - As 2020, however now commercail properties are included even if no change of tenancy occurs.
The Golden Rule - if an assessor has found that an improvement has a payback greater than 7 years and the property still doesn't meet MEES standards then an excemption may be granted.
Devaluation - if an expert determines that an improvement would lead to a likely decrease in valuation by 5% or may damage the property.
Third Party Consent - if works are refused by a third party. i.e. local authority.
What can I do now?
Ensuring your propety has an up to date EPC is the first step in ensuring MEES compliance. SBEM has been updated several times since it was first launched for EPC generation purposes. Re-running your EPC could give you a shock as it may have slipped down a band. It has been reported that up to 20% of properties initially assessed as a E may well in fact now be an F or G.
IRTs Edash platform can help you quickly assess different refurbshment options and see the potential savings and impact instantly. www.irtedash.co.uk
Our DREam platform enables you to visually see the locations of failing properties and the potential grant money available for retrofits. www.irtdream.co.uk
What to do with Failures?
A failing building is not always as bad as it seems. Utilising a thermal imaging survey you can easily identify quick wins where instant savings can be made. IRTs DREam platform can also provide you with grant saving options minimising the cost of any defects or qualifying retrofit measure. Whilst not cost neutral, the savings identified along with the efficiency benefits and grant funding available can result in an asset value rise in excess of the intitial capital expenditure.
If you'd like more information or to see how your stock performs please get in contact. We are offering a 30 day free trial for UK users.