The MEES Regulations and their impact upon Landlords has been well publicised for many years. Nevertheless, the vast majority of Landlords and their advisers are still not aware of the severity and scale of the new legislation, and many have continued to deny the most clear and imminent result of the Regulations:
It is now unlawful for a Landlord to grant a letting of a property with an EPC rating of F or G.
As explained in the Estates Gazette article, the scale of the problem is far greater than commonly perceived, with the 65% of commercial property with EPC ratings of D, E, F and G considered at risk.
In the worst case scenarios, tenants of non-compliant properties will use the Regulations to great effect to
– Greatly reduce, or potentially nullify dilapidations claims;
– Refute rent reviews;
– Drive down rents.
Whilst many Landlords and their advisers are seeking to circumvent the Regulations, there are many low or nil cost strategies to employ.