The minimum energy efficiency standard (MEES) was introduced in March 2015 by the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015.
Commercial buildings have an energy efficiency rating ranging from A – G. F and G are the worst performing. The new law introduced a minimum standard of E, such that buildings cannot be rented out unless they meet that standard.
The application of this requirement is being introduced in phases:
There are complex exemptions1 to both of these.
The penalty for renting out a property for a period of fewer than three months in breach of the MEES Regulations will be equivalent to 10% of the property’s rateable value, subject to a minimum penalty of £5,000 and a maximum of £50,000.
After three months, the penalty rises to 20% of the rateable value, with a minimum penalty of £10,000 and a maximum of £150,000.
Two sets of regulations (Energy Performance of Buildings (England and Wales) 2012 and the MEES Regulations) need to be considered when deciding if a building and tenancy is impacted.
Further detail can be found here
Exemptions must be registered on the central government PRS Exemptions Register. The register was intended to go live in October 2016 but is now due on 1 April 2018.
The exemptions are valid for five years only and cannot be transferred to a new landlord.