We are less than 12 months from the commencement of the second key measure for non-domestic (commercial) properties under the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 (MEES), which will make it unlawful to continue to let a non-domestic property with an EPC rating of “F” or “G”: In this Estates Gazette's article, Ben Strange at Mobius Building Consultancy, outlines the potential for landlords to think more tactically on when they are obtaining EPCs for their non-domestic properties. 

At present, MEES only requires that a valid EPC is provided at certain times, such as a new letting or sale of a non-domestic property. However, as the Government finalises its response to a consultation it ran in 2021 on changes to MEES, one of the proposed changes will require all landlords to hold valid EPCs for non-domestic properties, at all times. This will remove an ability for landlords to delay obtaining a valid EPC (for example where an EPC has expired).

Many landlords now have their own set of net zero targets, therefore opting to be tactical in obtaining EPCs may go against the landlord’s net zero target strategy and give rise to a reputational risk. What's more, some landlords now have green financing facilities in place for their portfolios which may also require more stringent EPC protocols to be followed than what is required at present under MEES.

As highlighted in the EG article, with MEES’s ultimate aim of “EPC B by 2030”, there are cogent reasons for landlords to be proactive in implementing energy efficiency improvements to their non-domestic properties. The forthcoming conclusion of the Government's consultation is likely to give further cause to landlords to consider how best to improve their non-domestic property portfolio’s energy efficiency, to ensure they have the necessary EPC rating to comply with MEES. 

(If you would like further details on the consultation, please see my colleague, Edward Glass's blog here.)