The Minimum Energy Efficiency Standards (MEES) regulations have been in place since 2018 which was the first step to give EPC’s real teeth requiring premises for new tenancies to achieve a minimum EPC rating of E before they can be let. From 1 April 2023 this will apply to all existing leases aswell. Further changes are proposed to raise the minimum energy efficiency standard to a B rating in 2030 with an earlier requirement to achieve a C rating in 2027 intended to incentivise action before the 2030 deadline.

Since EPC’s were first introduced in 2008, it has been a bit of a tick box exercise. Has the landlord got a valid EPC when it comes to grant a lease - tick. It has become part of the standard letting process. The introduction of MEES in 2018 did impact on the letting of properties rated less than an EPC E but otherwise that tick box exercise has continued.

But looking forward now, we have a change on 1 April 2023 and if the legislation which has been consulted on becomes law (best to assume it will in my view) we will have those further key dates in 2027 and 2030.

The consultation process has provided a catalyst for more debate on whether the current system is fit for purpose. An EPC rating is based on the cost of the energy a  building uses not the actual carbon emitted by that building. So alongside the EPC reform, the Government is considering a new ‘in use’ rating. But in the meantime the changes to the EPC regime will have an impact in the short term as landlords will need to have a business plan with budgets put in place for improvements as otherwise ‘stranded assets’ will become a reality.

The key point is that these dates are relevant now for leases already granted or leases to be granted for terms that expire after any of these dates.