By April 2018, all non-domestic properties will have to achieve a minimum EPC rating of E or above prior to a new lease, renewal or extension being granted. This legislation also applies to the sub-letting of properties, the tenant leasing becoming the immediate Landlord thus responsible for ensuring MEES is satisfied.

From 2023 landlords may not be able to continue letting a non-domestic property with an EPC rating of F or G . If a property is let not meeting MEES a fine of up to £150,000 will be enforced on the Landlord.

Please note some of the main exemptions to the legislation*:

• The new lease is under 6 months or over 99 years.
• The superior landlord is uncontactable
• Third party restrictions i.e. planning permission
• Improvement measures exceed 7 years payback
• Improvements would reduce the market value by 5% (which must be submitted by a RICS registered Valuer)

* for the exemption to apply it must be logged via a government portal

Emma Chapman (Senior Engineer M&E – Manchester) has created the attached simple flowchart which provides clear guidance through the legislation.

If you require any assistance with understanding your responsibilities or need assistance with this legislation, please do not hesitate to contact Emma on 0161 2335431.