The government has published guidance for landlords on the new regulations that could prevent them from renting buildings to tenants if they fail to meet minimum energy efficiency standards.
Minimum Energy Efficiency Standards (MEES) come into force in April 2018. The new laws mean public and private sector non-domestic landlords may not grant a tenancy to new or existing tenants if their property has an EPC rating of band F or G. From 2023, landlords will not be able to lease buildings with an energy efficiency rating lower than E.
According to some estimates, up to 20% of UK commercial buildings would fail to meet that standard.
However, the new guidance, from the department for business, energy & industrial strategy (BEIS), suggests landlords of F and G rated properties would have to take an extremely lax approach to notification via the exemptions register to leave themselves in that situation (see below).
Exemptions, which can be notified from April 2017, are made on a self certification basis.
The guidance sets out the scope of the regulations, how businesses assess whether efficiency works are viable, exclusions and exemptions, plus penalties, enforcement and appeals.
The maximum fine that could be imposed is currently £160,000 per property.
Download the guidance here.