A recent government statement has outlined the three proposed changes to domestic and non-domestic Minimum Energy Efficiency Standards (MEES), that are designed to provide a more proportionate and flexible approach towards small business owners.
Non-domestic rented buildings over 1000m2 are now advised to enhance their MEES status from band E to band B by 2031, instead of 2030 as was previously stated. This means business owners must improve their energy systems, or risk financial penalties as well as having their rental license revoked. Businesses that rent non-domestic buildings under 1000m2 will now no longer have to convert their heating and hot water system to band B from band E.
The third proposal focuses on the abolishment of the band C upgrade of MEES standards for domestic rented properties. The previous government aimed to move this to 2027, instead the new date of compliance is set at 2030. This is also designed to alleviate landlords of the need to make costly modifications on their properties.
All three new regulations will combine to create a version of net zero that is less immediate in its aim of decarbonisation, but more thoughtful in respect to the financial considerations of landlords and renters. These proposals ensure that any renovations towards energy systems are only considered and completed if they are practical, affordable and cost-effective.
So, what can we extrapolate from this new governmental approach? All three suggestions imply a change of direction, with the new government prioritising fiscal fairness over an aggressive form of decarbonisation. The reasons for this could be viewed as political, as it would be a sensible move to reduce future costs for renters and landlords across the property sector.
An additional political benefit of rolling back elements of UK net zero policy could be viewed as supporting a public view, or lack of. The public is keen to shift the pace of a national energy transition towards a more comfortable financial setting, with most of the UK public understanding that we need clean energy alternatives, but equally concerned with the financial impact.
These three MEES policy proposals support the idea that the UK government understands both the need for green energy and its potential effect upon UK citizens’ finances. Rental property owners should therefore research manufacturers that produce cost-effective and efficient technologies. www.rinnai-uk.co.uk