Beware of MEES

Jonathan Rhodes, head of commercial valuations and Rob Burke, director of building consultancy at Cluttons, caution commercial property owners and lenders following the closure of the UK government's consultation on Minimum Energy Efficiency Standards (MEES).

Following the closure of the MEES consultation in June this year, the property sector has a lot of work to do to reach the minimum Energy Performance Certificates (EPCs) targets.  

The consultation is designed to reduce energy consumption and carbon emissions related to commercial buildings in England and Wales, and may impact property owners significantly.

In 2019 the government intended to raise the minimum standard of EPCs from the current minimum "E" rating to a "B" rating by 2030.

By 2027 an EPC rating of "C" is proposed, preceded by a two-year compliance window during which property owners will be required either demonstrate that the threshold has been achieved or that they have registered an exemption.

As a consequence, Cluttons is making the following recommendations:  

For landlords

It will give a more transparent picture of the actual work needed in the drive to net-zero.  

For Lenders 

Although 2027 and 2030 seem a way off, this is only one cycle in property, and many things can change that affect and delay construction.

Property owners must get a handle on their portfolios now to build a plan that is practical, cost-efficient and allows them time for delays and complicated work.