With the introduction of Minimum Energy Efficiency Standards (MEES) the value and importance of accurate EPCs assessments has become clear. Some well informed tenants are using the EPC rating of sub-standard building to negotiate favourable terms on dilapidations and rent reviews in the knowledge that the landlord will potentially have significant capital cost liabilities after April 2018.

What You Need To Know:

- MEES (Minimum Energy Efficiency Standards) are now Law.
- There are over 800,000? CHECK THIS registered Energy Performance Certificates (EPCs) that do not meet minimum requirements
- From April 2018 - The regulations will be enforced upon the granting of a new lease as well as lease renewals and extensions
- From April 2023 - The regulations will apply to all privately rented property in scope of the regulations; including where a lease is
already in place and a property is occupied
- Penalties for non-compliance could be as much as £150,000

What You Should Do:

- Review your existing portfolio to identify the EPC ratings and those properties that are potentially at risk; D & below. Industry reports suggest that 33% of re-assessed D & E rated EPCs have dropped to F & G.
- For those properties that are at potential; review the data used to produce the EPC to check for default entries and data that is incorrect or has changed since the EPC was completed
- Have potential at risk properties re-assessed to understand rating under current benchmarks
- Identify renovation options that would bring the property into compliance with the minimum standards and assess the costs of the options.
- Test if proposed options can be excluded under the MEES payback criteria or if other exemptions are applicable for the property.

What you should Not Do:

- If you are reviewing existing unexpired EPCs which are rated E or better and a re-assessment suggests that the rating is now F or G.
DO NOT lodge this new EPC as that will make your compliant building
non-compliant under MEES.
- DO NOT invest in upgrading the building HVAC, Hot Water, Lighting and building fabric without having the upgrading proposals
modelled to assess impact of the EPC rating. Too often we have seen
£100,000's spent on buildings without any impact on the EPC rating.
- DO NOT acquire new property investments for rental without assessing the costs of complying with MEES legislation.

The implications of the regulations will be seen across the property industry; with landlords needing to invest in improvements to avoid penalties in the form of fines or empty properties and diminishing returns. Although not yet quantified there is likely to be an impact on property values as non-compliant properties are re-assessed; causing concerns for landlords and lenders alike.

Whereas previously it was just another piece of paper required to complete a transaction and was obtained for the cheapest fee; the value of a properly assessed Energy performance Cettificate; (EPC) is now coming to the fore.

Download as PDF| Report this press release


Set up by four industry experts MEES Solutions Ltd offers unrivalled specialist advice and modelling for all Domestic and Non Domestic ‘Minimum Energy Efficiency Standards’ related issues, be it houses or flats, office, retail or industrial, a portfolio of properties or a single unit.

We have the capability to assess and benchmark large portfolios quickly. We can also quality assess existing EPCs and offer advice on their inputs, reliance on defaults, rating if re-lodged now and suitability for MEES Compliance to quickly assess your exposure and liability.

We will use our expertise in the complex MEES legislation as well as our unparalleled knowledge of the EPC methodology to ensure the most cost efficient compliance solutions are achieved, be it through more accurate modelling, use of Level 5 software, MEES exemptions or energy efficiency improvements.
Contact us on 0203 908 4366 for more information or to discuss your requirements.