Skip to main content

The Minimum Energy Efficiency Standards (MEES) – Risk or Opportunity?



From 1 April 2018 the Minimum Energy Efficiency Standards (MEES) will come into force, making it illegal to agree a new lease on a commercial property with an F or a G Energy Performance Certificate (EPC) rating, unless the property is registered as an exemption. From April 2023 this will be the case for all existing leases, not just new ones. To help you understand what exactly is required and what exemptions are in place, a copy of the regulations can be found here.
Ian Shipley, Director within our Asset Management team who leads our energy services to the existing built environment provides some insight on preparing for the new regulations outlining how WYG experts will be assisting clients.

“Careful planning and preparation will be required to mitigate the potential impact, and we stress the importance to landlords and investors to take action now if they wish to avoid legal headaches in the near future.”

 The potential benefits of early engagement in this process are wide-ranging and could have a long term effect on the way you manage and maximise value from your property investments. For example, this may mean the early disposal of properties at a premium market rate before they become a liability under the MEES legislations. 

Alternatively upgrading an existing property’s look and feel can command higher rents or increase tenancy periods whilst also providing long term revenue savings from lower utility costs.
To help you prepare, it is important to establish how best to manage your MEES risk in order to effectively mitigate it, whilst making best use of any OPEX or CAPEX expenditure. We will audit your portfolio to confirm the buildings and tenancies to which the regulations apply and note exemptions based on building type/lease.  For the remaining non-exempt buildings further analysis will be carried out to determine options, based around a whole life assessment of your properties. These options may include:
  • Strategic Disposal – Where capital investment cannot be justified our Strategic Real Estate team review the most suitable opportunities for the property/site considering the current use of the building/asset plus any more valuable potential uses. Consideration is also given to market conditions in order to advise on occupier and investor demand levels in order to provide comprehensive advise on all options.
  • Energy Improvement Works – We target works on areas identified as having scored poorly within the EPC and where expenditure is able to be capitalised. Where capital improvements are carefully specified, these costs can often be offset within the first year through Enhanced Capital Allowances.  The works can often lead to a more comfortable environment for users or and enhanced aesthetic appearance.
  • External funding sources – We constantly review Government sponsored initiatives to help with financing energy efficiency measures such as loans or grants.  Additionally there may be 3rd party finance options which operate on a ‘pay as you save’ basis which may be worth consideration.

  • Renewable Solutions - As part of our option appraisal, we will consider the part that renewables or integrated energy storage solutions could have in reducing the impact of the EPC rating.  This may include solar, wind, ground source, natural ventilation and many others.        Our in-house services include:
  • Strategic Real Estate 
  • Planning Services
  • Energy Surveys and Inspections
  • Low energy and renewable design services
  • Low carbon funding advice
  • Building Surveying
  • Cost Consultancy
  • Project Management
  • Design and Specification
  • Procurement and Contract Administration
If you would like to talk to us to discuss the regulations, their impact on your properties and how you may qualify for a free portfolio risk assessment, contact us on T: 0113 219 2543 or E: ian.shipley@wyg.com. Click for more info
Labels:

Comments

Post a Comment

Popular posts from this blog

PhD Fellowship in Mathematical Statistics at NTNU, Norway

A new PhD fellowship in mathematical statistics is available at the Department of Mathematical Sciences, NTNU. The successful candidate will join a research project concerned with the mathematical foundation of statistical inference, which includes Bayesian, fiducial and frequentist statistics. The main aim of the project is to further develop a mathematically consistent theory based on mathematical measure theory, and subsequently, to develop accompanying computational tools for corresponding statistical inferences. The applicants who do not master a Scandinavian language must document a thorough knowledge of English (equivalent to a TOEFL score of 600 or more). The Norwegian University of Science and Technology is a public research university with campuses in the cities of Trondheim, Gjøvik and Ålesund in Norway. Course Level: Fellowship is available for pursuing PhD programme. Study Subject: Fellowship is awarded in the field of mathematical statistics. ...
Post a Comment
Read more

31 International Merit Scholarship Grants at Monash University Australia

Benefits Total average value of up to $50,000 (based on a 5-year degree) $10,000 for a full-time study load (48 credit points) paid per year until the minimum number of points for your degree are completed. Commencing undergraduate students will be invited to apply for a place in Monash Minds Recipients may be asked to participate or be profiled in relevant Monash marketing, recruitment and promotional materials and/or events. Click here for more info Number Offered 31 scholarships are available. Applications from students from all countries are invited and countries with strategic priorities for Monash will be given preference. Selection Based on academic achievement. Current students must have achieved a minimum 85 WAM Students will also be assessed on their scholarship application statement (500 words), and their potential to be an ambassador for Monash University. Preference will be given to commencing students. Eligibility All condition...
Post a Comment
Read more

Intermediate Fellowships in Public Health and Tropical Medicine

This scheme helps mid-career researchers from low- and middle-income countries establish independent research programmes in those countries. The scheme aims to support research that will improve public health and tropical medicine at a local, national and global level. Who can apply You can apply for an Intermediate Fellowship in Public Health and Tropical Medicine if you’re a researcher based in a low- or middle-income country. You should be driving your own research and be ready to lead an independent research programme. You can apply if: you’re a national of a low- or middle-income country you have a PhD or a degree in medicine and are qualified to enter higher specialist training you have significant research experience you have made important contributions to your area of research eg publications, patents, software development or an impact on health policy or practice. If you don’t have a PhD or degree in medicine, we may still consider you if you have a first or ...
Post a Comment
Read more