England & Wales: MEES minimum grade C by 2030: updated
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England & Wales: MEES Minimum Grade C by 2030: Updated
This news post has been re-written after September 2023. It does not apply to Scotland.
In a recent policy adjustment, announced iun September 2023, the government has decided to eliminate the requirement for residential landlords to achieve an Energy Performance Certificate (EPC) rating of C or above by 2028. This decision comes as a response to concerns over the financial challenges faced by residential property owners in meeting the upgraded energy efficiency targets. While this update directly affects residential properties, the situation for commercial properties remains uncertain.
Commercial Properties: Current Status
As of now, there is no official indication that the government plans to alter its energy efficiency targets for commercial properties. The accreditation body for energy efficiency certification indicated that the Government is committed however the timescales may change.
In a consultation conducted in 2021, the government proposed a substantial increase in the minimum EPC rating for commercial, non-domestic premises to C by April 2027 and B by April 2030.
Presently, the law prohibits the leasing of commercial premises with an EPC rating of F or G, making the proposed shift to C or B a significant adjustment.
Financial considerations for landlords of MEES Grade B
The potential cost for commercial landlords to achieve the proposed EPC rating of B by 2030 is substantial. A report by Avison Young last year estimated that the bill for enhancing the UK's industrial, manufacturing, logistics, and warehousing properties to achieve a B rating could reach £30.5 billion for this sector alone.
Conclusion
The recent government decision to relax residential landlord EPC targets prompts questions about the consistency of energy efficiency standards across different property sectors.
As residential properties receive a reprieve, commercial properties remain in a state of uncertainty, with pending responses to consultations and outdated guidance exacerbating the lack of clarity.
The potential financial implications for commercial landlords underscore the need for transparent and well-defined regulations, ensuring a balanced approach to achieving energy efficiency goals without unduly burdening property owners.
