Less than a third of UK businesses know how energy efficient their office building is despite the new minimum Energy Efficiency Standards (MEES) legislation coming into force next month, according to a survey conducted by Irwin Mitchell.
The firm’s ‘Redefining the Office – A report on office occupier trends in 20223’ survey found only 32% of the more than 500 office property decision markets questioned know the EPC rating of their main office building, with just 31% saying they know what EPC rating their office needs to be in April.
Nearly a fifth (19%) of property decision makers surveyed said they did not know their office’s EPC rating and an additional 18% admitted they do not know what needs to be done to offices to ensure they comply with the new regulations. Furthermore, 10% said they do not understand EPC ratings.
Tim Rayner, joint head of real estate disputes at Irwin Mitchell, said: “These figures should raise eyebrows, particularly given the changes come into force in April and with further new Minimum Energy Efficiency Standards (MEES) legislation down the line. For example, for all new tenancies beginning in 2025, the government is keen to change the minimum rating to a C.”
Respondents said they were concerned landlords would try to recoup the cost of upgrading buildings via the service charge or dilapidations claims (21%), with 18% saying they were worried about the potential disruption to working when landlord upgrades are carried out. Some 16% of respondents said they were concerned that if their landlord did not undertake requisite building improvement work they would not be able to renew their lease.
“Office occupiers really need to keep an eye on the situation,” said Rayner. “Whilst the cost of upgrades is in theory an issue only for landlords, some landlords may prefer not to incur that costs at all and instead try and end the lease.
“Those landlords who intend to carry out the upgrades may not only want access to the premises and cause potentially significant disruption but may try and pass on the cost of the upgrading either via the service charge or by seeking to include additional obligations in new leases, making tenants expressly liable for such costs. The MEES deadline is fast approaching and therefore it’s important that tenants are forearmed and ensure, for instance that their leases provide the controls they need.”
