Energy Performance Certificates
We are qualified Commercial EPC Assessors and are accredited by Elmhurst Energy.
Legislation came into effect from 1st April 2018 for any commercial property that has an EPC of lower than an ‘E’ cannot be rented out to new tenants, or renew any existing tenancy contracts until at least an ‘E’ rating is obtained. From April 2023, MEES will apply to all existing commercial leases.
A fine for breach of MEES
If a landlord continues to let a property in breach of MEES for up to three months, they will face a fine of 10% of the property’s rateable value, up to a maximum of £50,000. Letting out a non-compliant property for longer than three months will result in a fine of 20% of the property’s rateable value (capped at £150,000).
Exemptions?
There are some exemptions that which will enable a landlord to let, or continue to let, a substandard property, namely when:
- A property can be exempted if it is found that efficiency measures would decrease the property’s value by 5% or more
- ‘Seven-year payback test’: you will only be required to make energy efficiency improvements that have an expected payback of seven years or less. However, many measures are likely to meet the payback test. Lighting retrofit programmes, for example, or building control systems, can typically deliver savings well within the seven-year timeframe.
- A temporary exemption of six months can be granted to new landlords
Landlords who currently think their properties are compliant may find that upon renewal of the Energy Performance Certificate for their buildings that they are no longer compliant and therefore unable to rent out their properties.
Enforcement is undertaken by Local Authorities, usually Trading Standards but often solicitors will act as indirect enforcers as completing a lease with an uncompliant EPC is against the law. There is other indirect pressure on landlords to adheres to MEES from the commercial lending sector whereby MEES is a part of the lending criteria.
How can we help?
Not only are we qualified to prepare EPCs but we have a thorough understanding of how to achieve improved ratings and how a property market value can be disadvantaged or the mechanics of the lease can be problematic. There are also opportunities from MEES, particularly with pre aqcquisition advice.
We can help you to be MEES compliant by assessing current energy efficiency and energy performance risk across your portfolio and for individual assets.
Let us assess your property and prepare a fully costed investment grade proposals for achieving the minimum standards required on the most economic basis.
When necessary we will negotiate with landlords/tenants regarding the completion of energy efficiency projects and procure and manage any necessary improvement works.
