The new Minimum Energy Efficiency Standards (MEES) deadline is in less than two months
There are now only two months until the new Minimum Energy Efficiency Standards (MEES) deadline arrives.
HSB Engineering Insurance (HSB), part of Munich Re, has warned that commercial property owners who are not prepared could lose significant amounts of rental income as non-compliant properties become increasingly difficult to rent out.
Investors must meet the MEES grade E on their energy performance certificate (EPC), by the deadline of 1 April 2018.
This new regulation applies to residential and commercial properties rented out in the private rented sector and will come into effect on 1 April 2018 for new tenants and for all existing tenancies by 1 April 2020.
Research from HSB highlights a lack of awareness in the insurance market with only 18% of UK insurance brokers surveyed aware of the effect the Energy Act 2011 will have on property owners when it comes into force in April 2018.
Andy Bazley, underwriting manager at HSB commented: “The introduction of the energy act will have an impact on the commercial property insurance market. Lower-rated commercial properties will not only become less attractive to future occupants but may suddenly become illegal to rent out without energy-saving upgrades in place to bring them up to the required level. With fines of up to £150,000 for non-compliance, it is essential that property owners are aware of the new regulations.”