UK Minimum Energy Efficiency Standards (MEES) update for the non-domestic private rented sector

On 18^th June the UK government produced a short update to the MEES consultation outcome.  The update sets out how the government plans to strengthen policy by focusing on supporting businesses that rent larger premises.

Key intentions highlighted include plans to:

• Set a minimum EPC rating of B from 2031 for all private rented buildings over 1,000 sq m in England and Wales
• Continue with a minimum rating of E for buildings below 1,000 sq m
• Cancel the previously proposed EPC C milestone of 2027
• Maintain existing flexibility mechanisms, including the 7 year payback test and exemptions.

The Government estimates that this will generate energy savings of £360 million per year by 2031 for tenants of larger buildings.  It further states:

While continuing to improve the poorest‑performing buildings through the existing EPC E standard, we are giving additional flexibility to SMEs and high street landlords of smaller properties to upgrade their buildings over time, with no set deadline for going beyond this level. With a fair and proportionate timetable, the policy supports business investment, reduces exposure to volatile energy prices and strengthens UK energy security. 

So we have some clarity, but questions remain, notably will the area assessment be based on tenancy size of size of overall building?  However, further detail is promised in the forthcoming government response to the public consultations and it should be noted that for these intentions to progress, they will need to pass through secondary legislation approval in Parliament.  They are not guaranteed.

If you have any questions, please don’t hesitate to contact EVORA.