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New guidance report to help property investors meet MEES

With just 12 months until the Minimum Energy Efficiency Standards (MEES) come into force, property software provider Arbnco, formerly known as CO2 Estates, has released a guidance report for property investors and landlords to help achieve MEES compliance. 

The MEES will require properties to achieve a minimum ‘E’ rating and will apply to new leases and renewals from April 2018.

Research produced by Arbnco has found that the estimated 19% of properties not complying could see their capital value reduced by as much as 10% with the impact on the total UK value estimated to be as much as £16.54bn.


Pauline White, underwriting analyst at Zurich said, “In a matter of days we will begin the 12 month count down to the regulations coming in to force in April 2018.

“Action now to identify at risk properties and the costs to improve them will be time and money well spent. Without this, the owner could end up with a property that cannot be let, potentially long term unoccupied that becomes a drain on resources instead of generating an income.”  

The paper contains a five-step plan to achieving MEES compliance:

1 Portfolio Review: identify properties with no EPC, review lease renewal dates and decide whether a new EPC is required.

2 Confirm that ‘at risk’ properties, (F and G EPCs) are really F and G by undertaking new EPCs to provide accurate and dependable ratings before undertaking any retrofit works.

3 Identify means of retrofitting ‘at risk’ properties to achieve an E rating or better and assess the cost of compliance. Review impacts of future refurbishments and planned preventative maintenance (PPM) schedules.

4 Incorporate energy efficiency improvements into retrofit and PPM schedules.

5 Update leases, tenant fit-out and dilapidations processes to allow for appropriate provisions for the landlord/owner to continue to comply with the requirements of MEES.

Simon West, founder of Arbnco, commented: “All landlords will potentially be affected by the MEES regulations, irrespective of the size and nature of portfolios and early action is advised to mitigate the impact.  Landlords and investors need to acting now to alleviate the risks posed by MEES legislation ahead of the April 2018 start date.”

The full guidance report is available to download here


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