Rural Estates Newsletter February 2023 - Flipbook - Page 20
6 – Don’t MEES the boat
•
Devaluation: where you can obtain a report from an independent Royal Institute of
Charters Surveyors (RICS) assessor that installation of a measure would devalue a
property by more than five per cent, a devaluation exemption can be registered. Any
recommended measures not covered by the report must still be carried out.
•
Seven-year payback (non-domestic property only): if the initial cost of the
measure exceeds the savings it would create on energy bills over the next seven
years, then the measure will be deemed not to be a relevant energy efficiency
improvement and this exemption can be used. Recent fluctuations in energy prices
mean it will be extremely difficult to be accurate about predicted future savings and
this test will become increasingly hard to meet.
An opportunity, not a threat
Although it is tempting to dismiss making properties MEES compliant as yet another
outlay for landlords, the value (both to the occupant and the environment) of more
energy efficient buildings is undeniable. It is already something that tenants and lenders
are taking much more seriously, and demand for efficient dwellings and offices looks
set only to grow in the future: there are proposals to raise the minimum standard to C or
B by 2030. Landlords with compliant portfolios will be set fair to take advantage of this
developing market.
“
... the rules from 1 April 2023 will be that it will be
unlawful to let, or continue letting, any domestic or
non-domestic building with an EPC rating of lower
than E.”
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Rural Estates Newsletter
February 2023