In April 2020, the government of the United Kingdom established Minimum Energy Efficiency Standards (MEES) for rental properties, mandating that landlords achieve certain Energy Performance Certificate (EPC) ratings. Currently landlords are prohibited from renting properties with an EPC rating lower than E, unless they possess a valid exemption.

For commercial property owners in the UK, the regulations regarding Energy Performance Certificates (EPC) are tightening. As of April 2023, every leased commercial property is required to possess an EPC rating of E or higher in order to be legally rented out.

Proposed Changes

The government is suggesting a higher Minimum Energy Efficiency Standard (MEES) in accordance with new metrics that are set to be introduced in Energy Performance Certificates (EPCs) after the EPC reform in 2026. These new metrics will evaluate energy performance by considering fabric performance, smart readiness, and the efficiency and emissions of the heating system.

The government is suggesting that landlords be mandated to invest a maximum of £15,000 per property for improvements necessary to meet the standard. Should the costs of achieving the standard exceed this amount, landlords may apply for an exemption. This proposed cap of £15,000 is designed to remain stable and will not automatically adjust with inflation. In contrast, the current maximum investment required for the EPC E standard is £3,500. The consultation aims to gather opinions on whether this £15,000 cap is suitable or if an alternative amount should be considered.

The proposed timeline is for the higher standard to apply to new tenancies from 2028 and for all tenancies to be compliant by 2030. Link to the Government consultation.