Minimum Energy Efficiency Standards
The legislation is designed to tackle the very least efficient properties, aiming to trigger cost-effective investments in a variety of building types, to reduce waste energy and carbon emissions, thereby reducing occupiers’ costs.
Increasing the efficiency of the UK’s property stock is also projected to help smooth seasonal peaks in energy demand, and thereby increase our energy security.
What Does Minimum Energy Efficiency Standards Mean?
In April 2018, amendments were made to the Energy Performance Certificate (EPC) requirements for landlords under the Energy Act 2011, known as the Minimum Energy Efficiency Standards (MEES). This legislation prohibits landlords from renting residential or commercial properties with an EPC rating of F or G until they have addressed the energy efficiency issues. Properties that fail to achieve at least an E rating must implement improvements to enhance their performance and meet the minimum standard. Landlords cannot let their properties without a compliant EPC or an approved exemption.
Based on our experience, Compliance365 has observed that without investment in buildings, ratings will continue to decline in comparison to the constantly improving target set by the SBEM calculation tool. We collaborate with clients who manage extensive property portfolios to assess the current EPC ratings across their assets and identify opportunities for straightforward improvements to ensure compliance.
It has been reported that there are about 75,000 commercial properties across England and Wales with F or G rated EPC’s, with a further 65,000 with an E rating.
What is the Purpose?
It has been reported by the Department for Business, Energy & Industrial Strategy that non-domestic buildings are responsible for 12% of the UK’s emissions. With standards to tackle the energy performance of new buildings being in place for some time, the purpose of the new legislation is to increase the rate of upgrades to existing inefficient properties and raise awareness of energy-related issues. The new legislation is designed to tackle the very least efficient properties, aiming to trigger cost-effective investments in a variety of building types, to reduce waste energy and carbon emissions, thereby reducing occupiers’ costs.
Increasing the efficiency of the UK’s property stock is also projected to help smooth seasonal peaks in energy demand, and thereby increase our energy security.
Implications For Property Owners
It is predicted that the cost of energy and mandatory energy efficiency improvements may affect a properties market value. This could result in potential buyers and tenants being more cautious when choosing properties, due to the risks associated with F or G rated buildings. It is predicted that this will have a negative impact on landlords that have not undertaken the necessary actions to understand their energy rating or invest in the required improvements ahead of the 1st of April 2018.
The energy upgrades associated with the new legislation will be beneficial to occupiers and Landlords, as it will reduce running costs, help to maintain property market value and reduce CO2 emissions across the UK.
Compliance365 Experience
Compliance365 helps you meet compliance deadlines by offering:
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Advice on legislation and its implications for landlords and occupants.
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Assessments of building energy efficiency through Energy Performance Certificates (EPC).
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EPC Reviews detailing potential upgrades, improved ratings, costs, and savings.
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Budgetary estimates for proposed upgrades to guide compliance steps.
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Support during installation, including issuing compliant certificates or assisting with exemption listings for properties that cannot meet minimum E ratings.