From 2027, the new Minimum Energy Efficiency Standards (MEES) is set to rise to a ‘C’, triggering a major shift in commercial property regulations.
First introduced by the government in 2018, MEES aims to phase out properties that aren’t energy-efficient, reducing the UK’s overall CO2 emissions.
The minimum Energy Performance Certificate (EPC) rating is ‘E’, since April 2023. Under the new rules set to start in 2027, that threshold will jump to ‘C’ and then further up to a ‘B’ by 2030.
If your property doesn’t meet that requirement, you could face hefty fines and compliance headaches. So, if you own commercial property, ask yourself:
- Do you know your current EPC rating?
- Are you aware of the costs and upgrades needed to meet these new standards?
- What steps can you take now to future-proof your property and avoid penalties?
- Are your agreements that your commercial property is subject to (leases and licences etc.) drafted to provide you the power to make the relevant improvements to your property so it is MEES compliant?
2027 will come quicker than you think. So, being proactive is key, and there are significant benefits to acting now beyond compliance too.
By meeting the new standards before 2027, you could boost your property’s value, save money on energy bills and make your property more attractive to increasingly ESG-conscious tenants.
HOW CAN COOPER PARRY HELP?
Our Property Law Team can help you navigate the changes and stay one step ahead. We’ll ensure you stay compliant while improving your property’s sustainability. Whether you are a landlord or a tenant, we can ensure your leases and licences protect your position.
Our support could include ensuring you have the required rights to carry out works, allowing the cost of environmental improvement works to be recoverable from other parties, ensuring you obtain the financial benefit of environmental improvement works, or ensuring that other parties don’t put you at risk of failing to comply with your MEES obligations.
If you’d like to discuss your position and find out more about how we can help, we’d love to chat.
Feel free to reach out to our property experts, Noordin Mushetet and Scott Leonard.
