The UK Government’s Minimum Energy Efficiency Standards (MEES) are set to come into force at the beginning of next month, which will mean commercial property owners and landlords will need to ensure their properties meet at least an E on the Energy Performance Certificate.
From April 1, 2023, properties that achieve an F or G rating on the Energy Performance Certificate will have to make improvements if they wish to continue having tenants. That’s because it will be unlawful to let out any property achieving below an E on the EPC.
The introduction of these new restrictions should not come as a surprise for any landlord or commercial property owners, considering legislation on Minimum Energy Efficiency Standards was introduced eight years ago. At the time, it stated that properties could not grant any new tenancies if they failed to meet the standards, but that will expand to include existing tenancies next month.
While the deadline is fast approaching, lighting manufacturer Tamlite Lighting believes that the commercial property sector needs to accelerate its investment in energy efficiency if it hopes to ensure it stays on the right side of the law. In fact, according to recent research by real estate firm Savills, the changes could mean 185 million sqft of all retail space in the UK could soon become ‘unlettable’. Whilst a 2023 study from BNP Paribas Real Estate focused on inner London, and suggested that 8% of existing commercial stock in that region could be impossible to let after April 1, 2023.
That would send shockwaves through the commercial property industry, and could lead to rising prices for businesses looking for space. However, it’s not likely to reach that point, with many landlords and commercial property owners more likely to invest in the necessary energy efficiency improvements to ensure they can continue to benefit from their properties.
Failure to comply with the strengthened MEES legislation means significant fines for those who fail to bring their let commercial properties up to standard. The onus is on property owners and landlords to make the necessary changes – and quickly. According to Tamlite Lighting, the most important first step is to build a strong dialogue (including with the tenant) to ensure that the lines of responsibility are transparent, and that an effective timetable is established.
Once those aspects have been defined, stakeholders need to review their use of technology and how it helps – or hinders – the efficiency of their buildings. Total operational carbon emissions from all buildings make up around 17% of the UK’s overall emissions; and when you consider that lighting accounts for nearly 5% of global CO2 emissions, it goes to show that the measures being put into place by MEES legislation will make a big difference towards overall energy consumption. And without doubt, one of the most important factors is lighting.
“The imminent alterations to the MEES regulations have underlined how critical it is for building systems to be as efficient as possible,” says Tamlite’s Debbie-Sue Farrell.
“Not only does lighting represent one of the greatest single ways in which the energy performance of a building can be improved, it is also a huge factor in improving the long-term wellbeing and productivity of tenants and employees.”