MEES Penalties for Commercial Landlords
Written by Scott Jones, founder of CommercialPropertyKiln · Last updated
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Letting a sub-standard commercial property, or breaching the MEES rules, carries financial penalties and publication. The amounts are far higher than the domestic regime.
How penalties are set
Penalties depend on the rateable value and how long the property has been let in breach:
- Breach of less than three months: up to 50,000 pounds.
- Breach of three months or more: up to 150,000 pounds.
A penalty for providing false or misleading information on the exemptions register can also apply. Local authorities enforce the regime, and a breach can be published, which carries reputational cost alongside the fine.
No domestic-style cost cap
The domestic MEES regime has a fixed cost cap. The non-domestic regime does not. Instead, the seven-year payback test decides whether an improvement is required, which can make the commercial rules more demanding to justify.
Avoiding a penalty
The route to safety is simple in principle: get the property to at least EPC E, or register a valid exemption before letting. Model the numbers with the MEES upgrade calculator so you can compare the cost of works against the penalty and void risk.
How are MEES penalties calculated?
By rateable value and how long the breach lasts: up to 50,000 pounds under three months, and up to 150,000 pounds for three months or more.
Is there a cost cap on commercial MEES works?
No. Unlike the domestic regime, the non-domestic rules have no fixed cost cap; the seven-year payback test decides whether an improvement is required.