Energy Performance Certificates (EPC's) and Minimum Energy Efficiency Standards (MEES)

As you will know, an EPC considers a building’s energy efficient, whilst MEES set the target for the energy rating that building must reach before a landlord is able to lease that property to a tenant. Together, they seek to reduce carbon emissions by pushing energy-efficient improvements. The hope is that this will significantly reduce the greenhouse gas emissions within the UK.

Net Zero is ambitious to say the least, but with the recent closure of the last Coal Power Station in England, we certainly are doing more than most to achieve this target. That said, the current trajectory is likely to see the target missed, or at least pushed back by a few years. Whilst EPC and MEES regulations have played their part in accelerating energy-efficient improvements, many factors are causing experts to question whether they alone are going to be sufficient to achieve Net Zero.

There is definitely mixed opinions about their effectiveness and there is currently plenty of debate about the increase in minimum EPC ratings to “C” which has now been postponed to 2030. On the other hand, stricter standards are essential to make meaningful progress towards Net Zero, but who is going to bear the brunt of the costs – the investor landlord or the entrepreneurial tenant.

Additionally, the EPC system has faced scrutiny for its accuracy and relevancy. As energy performance metrics evolve, some believe the current EPC assessments may not fully capture a property’s real carbon impact. To address these concerns, experts are urging the government to introduce funding for retrofits and to improve EPC assessments. For Net Zero, streamlined and supportive EPC and MEES frameworks are necessary to balance environmental progress with economic realities.

And what are we meant to do about the existing building stock? Millions of properties in the UK will fall well below the proposed C rating and the investment and labour required to bring that up to standard will be substantial. Offset that with the turgid planning system and it is no wonder that many landlords are simply selling up and removing the headache. 

Grants and incentives only do so much and are intermittent at best. Technological improvements, such as more accurate EPC assessments, could help optimise efforts by identifying the most impactful upgrades. Still, without stronger commitments to renewable energy integration, reduced reliance on fossil fuels, and sustained support for landlords and tenants, reaching Net Zero remains uncertain. As it stands, without substantial policy shifts and improved financial support, many experts predict that the target may need to be extended, or seek a more achievable timeline.

We can advise both landlords and tenants on their responsibilities and discuss potential options and pitfalls within their portfolios. The EPC & MEES problems are here to stay, so better to deal with them at the earliest opportunity. Just call our team on 01926 491181 for further advice and guidance. 

Article by: James Williams | Director & Commercial Property Solicitor