MEES for Commercial Buildings: Understanding the Legal Requirements
A Commercial Energy Performance Certificate
The Minimum Energy Efficiency Standards (MEES) are a critical consideration for commercial property owners and managers in England and Wales. These regulations are designed to improve energy efficiency in privately rented commercial properties and apply to offices, retail spaces, industrial units, and other commercial buildings.
Legal Framework and Statutory Requirements
MEES was introduced under the Energy Performance of Buildings Regulations and subsequent amendments to the private rented property legislation. The rules require that commercial properties have a valid Energy Performance Certificate (EPC) and meet a minimum energy efficiency rating before being let or continuing to be let.
Since 1st April 2018, it has been unlawful for a landlord to grant a new lease of a commercial property with an EPC rating of F or G. This prohibition also applies to the grant of subleases and to lease renewals.
From 1st April 2023, it also became unlawful for a landlord to continue letting a commercial property with an EPC rating of F or G unless a valid exemption has been registered. This requirement applies to both new leases and existing tenancies. As a result, a lease that was lawful when originally granted may have become unlawful from April 2023.
Failure to comply can lead to substantial financial penalties and reputational harm.
Exemptions
While MEES applies to most commercial landlords, some properties may qualify for exemptions. These include temporary structures, certain industrial or agricultural properties, and listed buildings where required improvements would conflict with heritage regulations. Exemptions must be registered and are typically valid for five years.
Landlords who cannot realistically improve their property to meet the minimum standard due to cost, practicality, or structural limitations must register an exemption. Proper registration ensures legal compliance and protects against enforcement action.
Current and Future EPC Requirements
Currently, all commercial properties being let must have a minimum EPC rating of E. Properties rated F or G cannot be legally let unless an exemption applies. Looking ahead, the government has proposed stricter standards. By 2027, most commercial properties will need a minimum rating of C, with a target of B by 2030. These changes reflect broader environmental objectives and the move toward net-zero emissions. Landlords are advised to plan ahead to avoid cost inflation associated with last-minute upgrades.
Penalties for Non-Compliance
Failure to comply with MEES can result in substantial penalties. Enforcement is carried out by local authorities. For breaches under three months, fines start at £5,000 or 10 percent of the property’s rateable value, capped at £50,000. For breaches exceeding three months, fines increase to £10,000 or 20 percent of the rateable value, capped at £150,000.
In addition to fines, landlords may face public disclosure of their breach. This can negatively affect the property’s reputation, tenant demand, and market value. MEES does not prescribe specific works but requires that the property either meets the minimum EPC rating or has a registered exemption.
How Hollen+ Can Help
Hollen+ helps commercial property owners and managers navigate MEES compliance with confidence. We provide EPC assessments, precise upgrade recommendations, energy efficiency audits, and tailored retrofit strategies. Our team can manage all documentation and exemptions, ensuring your property meets current standards and is future-ready. By working with Hollen+, you protect your assets, avoid fines, and enhance tenant appeal.