The Minimum Energy Efficiency Standard (MEES) make it unlawful for properties with F or G Energy Performance Certificates (EPC) to be let, without implementing cost effective energy efficiency improvements or fulfilling an exemption criterion. Cost-effective improvements must meet the simple payback rule of a 7 year payback or Green Deal’s Golden Rule that the expected savings must be greater than the cost.
MEES comes into effect on 1 April 2018 for new leases and lease renewals/extensions where there is an EPC already and from the 1 April 2023 for all existing leases.
The Asset+ team can work with you to identify your risk exposure under MEES and develop an appropriate mitigation strategy to ensure your assets are future proofed with minimum or zero capital outlay utilising the unique Asset+ Energy Performance Model.
The legislation detail
New regulations for non-domestic private rented sector come into effect from April 2018, implementing the UK Energy Act of 2011. The secondary regulations, The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015, known in the industry as the Minimum Energy Efficiency Standard (MEES), have now been confirmed and passed into law.
What’s in scope?
- MEES applies to multi-let and FRI leases
- MEES applies where a property is required to have an EPC under existing regulations and where an EPC already exists
- MEES will apply to sub-lets
- MEES will apply where there is a leases over 6 months and under 99 years in length
When will exemptions apply?
There are a number of exemptions including where a tenant refuses consent for energy efficiency works and where the works would have a negative effect on rental or capital value
- Exemptions should be evidenced, will expire after 5 years and will not transfer with a sale of the property to a new owner
- Trading Standards will need to be notified on any exemptions to MEES, which will be lodged on a central register
- Penalties for non-compliance begin at £5,000, rising to a maximum of £150,000