New Law for Commercial Landlords with Energy-inefficient Properties

By Cliff

Last April saw the introduction of new regulations: Minimum Energy Efficiency Standards (MEES). It is now illegal for a landlord to renew or start a lease on a commercial property if its Energy Performance Certificate (EPC) score is below E.

From 1 April 2023 MEES will be extended to cover existing leases, including sublets.

When a property’s EPC score falls below E, energy efficiency upgrades must be made before it can be let.

Some listed properties could be exempt from these new regulations, if required upgrades alter the building’s character.

These new regulations are enforced by Trading Standards Officers – and penalties for breaching them are substantial. If a breach lasts for less than three months, the commercial property landlord could be fined up to £5,000 or 10% of the property’s rateable value (whichever is greater). The maximum penalty for a breach that lasts less than three months is £50,000.

If a breach lasts for more than three months, a penalty of up to £10,000 can be charged, or 10% of the property’s rateable value, up to a maximum of £150,000.

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