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Energy Performance Certificates and Minimum Energy Efficiency Standards: Commercial Property

Energy Performance Certificates and Minimum Energy Efficiency Standards: Commercial Property

Commercial property EPC and MEES requirements, graphic showing EPC

By Elena Nicolaou, Head of Commercial Property

The drive to be ‘greener’

In line with international agreements, the UK government is striving to achieve a reduction of 78% in greenhouse gases by 2035 and net-zero emissions by 2050. As part of the government’s plan the rules on Energy Performance Certificates (EPCs) and Minimum Energy Efficiency Standards (MEES) in relation to commercial property are incrementally changing until 2030.

What is an EPC?

Energy Performance Certificates (EPCs) rate the energy efficiency of commercial and residential buildings in the United Kingdom.

How can Palmers help?

The rules relating to Energy Performance Certificates and the minimum standards are complicated and fast-changing.

The result of non-compliance, or failure to register a valid exemption, can be hefty fines and reputational damage to your business. If you wish to discuss this topic further or require advice in connection with your commercial property, please contact our Commercial Property Team.

The current rules

A commercial property with an EPC rating of F or G is said to be ‘sub-standard’. The current acceptable minimum energy efficiency rating is E (unless a valid exemption has been registered).

It is a legal requirement that a valid EPC Certificate must be available for all commercial properties that are sold or leased (including both new and existing leases) in the United Kingdom. There are also requirements for when your EPC must be visible on the premises.

If your property does not have a valid EPC, or you require your energy rating to be re-assessed, you should consult a Commercial Energy Assessor. The UK government website has a function that allows you to search for assessors local to you by inputting your postcode, which can be accessed here.

There is a publicly available government register of EPC Certificates (for both domestic and non-domestic properties) where you can search by postcode and download a free copy of any EPC which exists for a property, along with the recommendation report.

Future changes

The requirements will be changing further over the next couple of years. You should consider what steps you can take now to ensure you are ready for future changes in the MEES. The current guidance from the UK Government has set out the following staged increases:

  • 2027 – Minimum ‘C’ Rating – By 2027, all commercial properties must have improved the building to an EPC rating of a ‘C’ or above, or have registered a valid exemption.
  • 2030 – Minimum ‘B’ Rating – By 2030, all commercial properties must have improved the building to an EPC rating of a ‘B’ or above, or have registered a valid exemption.

Exemptions

There are various exemptions to the MEES, which are:

  • Devaluation – where the necessary improvements would damage the property or devalue it by 5% or more you can register a devaluation exemption. You would need to obtain a report from a RICS assessor to rely upon this exemption and any recommendations not covered by the report must still be carried out.
  • Seven-year payback – if the landlord can demonstrate that the initial costs of improvements would exceed the energy savings it would generate over the next seven years then this would not be considered a relevant energy efficient improvement.
  • Consent – where the landlord cannot obtain the necessary consents to carry out the required improvements (such as from a superior landlord or the local planning authority).
  • Improvements already carried out – if the landlord can show that they have carried out all cost-effective improvements to the property (or where there are none to be made) but the property still has a sub-standard EPC rating an ‘all-improvements’ exemption can be registered.

It is important to note that, if you intend to rely upon an exemption, for it to be valid it must be registered on the government register of exemptions. The registered exemption will need to be evidenced if you plan to sell or lease your property. Exemptions must be renewed every five years otherwise they will expire and the MEES will apply in the normal way.

If you are purchasing an exempt property, you should note exemptions are personal and do not pass upon sale. Any relevant exemption would need to be registered under the purchaser’s name.

Non-compliance

The main penalty for failing to comply with MEES is a fine. This fine is calculated by reference to the rateable value of the property and the length of the breach, subject to a maximum of £150,000 (per breach) under current rules. This may change in the future.

The UK Government can also publish the property owner’s details on a public register setting out specific details of the breach. Considering the general commercial drive to improve corporate social responsibility, this is likely to cause significant reputational damage to any business.

Non-compliance with MEES is not a criminal offence.

For further information and advice on commercial property EPC and MEES requirements, contact a member of our team today. 

Palmers Solicitors fights ‘price of dementia’ with over £2,000 raised for Alzheimer’s Society

Palmers Solicitors fights ‘price of dementia’ with over £2,000 raised for Alzheimer’s Society

Essex-based law firm, Palmers Solicitors, has taken on the ‘price of dementia’ in 2024, raising £2,155 on behalf of the Alzheimer’s Society with a successful charity raffle.

This Dementia Action Week (13 to 19 May), the firm campaigned to raise awareness of the effects of dementia and support the charity in its fight for social, financial and medical support for those diagnosed with the condition.

The campaign culminated in a highly anticipated raffle draw at the Phoenix Bistro, Basildon on Friday 17 May.

Plenty of fantastic local businesses supported the event with donated prizes, including Richard Luckin Chartered Accountants, Rowland Hall, Matthew Douglas Ltd, Sandra Connington HR Consultancy and Clive Emson Land & Property Auctioneers.

Our solicitors said: “It’s been a great experience, organising this event and seeing how the whole community can come together for a good cause.

“In the course of private client work, we’ve seen the impact that dementia can have on individuals and families. We wanted to take the opportunity to do our bit for those affected, and raise funds and awareness of the ‘price of dementia’.

“Congratulations also to our lucky winners, and thank you to everyone who made this event possible and campaigned to support those with dementia and their families.”

Palmers Solicitors celebrates 20 years of serving Thurrock community

Palmers Solicitors celebrates 20 years of serving Thurrock community

Marking two decades of dedicated service to the Thurrock community, Palmers Solicitors’ third office location has reached a major milestone – celebrating its 20th anniversary this year.

Since the opening of its Thurrock office in 2004, Palmers Solicitors has invested significantly in its support for the local community.

This has included at Thurrock office:

  • Acting on nearly 10,000 residential property matters and lending a helping hand to those moving around and into the area.
  • Applying unmatched expertise and a sensitive, client-first approach to over 3,100 family law matters.
  • Helping over 1,800 individuals and families with wills, probate, advice on trusts and powers of attorney and issues of generational wealth.
  • Represented commercial clients on nearly 2500 commercial property and commercial law matters; and
  • When things unfortunately meant arguments escalated some 790 dispute resolution and employment matters

Brooke Barnes, a Senior Associate at the Thurrock office said: “It’s a significant honour for all of us to be able to serve our local community through the work that we do.

“We take great pride in acting as advisers to the community, which is a privileged position for us to be in.

“Thank you to all our clients who have worked with us for trusting our team and allowing us to help at life’s major milestones.”

The firm’s success has been reflected in the Thurrock team’s achievements, winning two consecutive Thurrock Business Awards for Excellent Customer Service and other awards.

The team at Thurrock has also embraced its community and charity activities beyond the office – including supporting amongst other worthy causes, the Thurrock Food Bank, Treetops School and Basildon & Thurrock University Hospitals through the Polly Parrot Appeal.

BJ Chong, Supervising Director at the Thurrock office said: “Our Thurrock office has gone from strength to strength since it opened 20 years ago, with a great team dedicated to the community.

“It’s been a great privilege to watch the team and our presence in Thurrock grow as we add new colleagues and work to improve the lives of our clients.

“Looking to the future, we look forward to growing our offering to the Thurrock community even further and providing career development opportunities to our dedicated team – embodying our shared value of ‘moving forward together’.”

Palmers Solicitors L-excels in latest Law Society assessment

Lexcel Logo

Essex-based Palmers Solicitors has hit another mark of excellence, just months after celebrating its 40th anniversary!

The firm has achieved a renewal of its prestigious Lexcel accreditation following a thorough review of its policies, procedures, strategies and management – with no identified major non-compliances.

Lexcel, the Law Society’s legal practice quality mark, sets the standard for compliance, practice management, client care, and management of people, information and finances.

It also offers a support system for client retention and practice growth, ongoing compliance and lowering new and existing risks.

Lexcel accreditation provides an assurance to clients and colleagues that the firm is leading the way within the legal sector, prioritising great client care and internal management.

The firm itself was recognised for its “comprehensive” risk management processes and “excellent” internal updates to keep the team up to date on the latest developments in the community and the legal sector.

Most notably, the practice received commendation for its “good and honest” strategic plan detailing strengths, challenges and expansion plans.

Gina Newman, Practice Manager at Palmers Solicitors, said: “We’re all incredibly proud of this achievement.

“We’re grateful to everyone in the team who assisted with our assessment, including collating information, taking part in interviews and maintaining a culture of excellence within the practice.

“We were particularly pleased to be recognised for our strategy and business planning, which we’re using to drive our team forward and continually develop the way we serve clients and the services we can offer.

“Looking forward, we’re all taking this opportunity to reaffirm our commitment to one another, our clients and the local community.”

Becoming a law firm Director is what you make of it

Becoming a law firm Director is what you make of it

Until recently, partnership in a law firm was seen as the end goal for many junior solicitors, an inevitable destination of a decades-long career.

However, research suggests that this may no longer be the case. A 2024 LexisNexis survey found that 49 per cent of firm leaders have noticed a decrease in the number of associates aspiring to partnership level, rising to 63 per cent for leaders in larger firms.

This is not, as could be assumed, purely a result of career dissatisfaction. Three quarters of associates planned to stay in private practice in the coming five years, with 58 per cent planning to stay at their current firm.

It seems it is the result of a negative perception of being a partner and what the role entails.

While we accept that increasing seniority is not going to be right for everyone, some of our most recent Directors are here to demonstrate why directorship looks different for everyone and show just how rewarding it can be.

Directors at Palmers

Supervising Directors, Donna Smy (Private Client) and Erin Cronin (Residential Property, Head of Rayleigh Branch), got together to share their thoughts on their role as Directors at Palmers Solicitors.

Donna said: “I enjoy working within a team of leaders who have the same focus and care about the business, clients and staff. It is so rewarding to create a supportive and positive environment for everyone to flourish in their career.”

“The role of being a partner or director is very different to simply being a solicitor. You are helping to maintain and grow a business which will be a lasting legacy for future generations of solicitors to come.”

Erin was particularly keen on “taking on new challenges”: “Palmers has offered plenty of opportunities to utilise my skills and supported me in progressing into the director of the department. I enjoy how the management committee always welcome new ideas and approaches to improving the firm’s strategy and culture.

“I’ve gained a real sense of achievement and an ability to enhance my skills with the support and guidance of those who have gone through the same process before me.”

Driving the decision

What made our talented Directors decide on a career in legal leadership?

Each person comes into the role with their own goals and strategies, but directorship roles are generally united by a drive to shape the direction of a firm and that of its team.

In Donna’s words: “I always felt that the wellbeing of my colleagues and peers was important and realised that this is outset of simply being a solicitor – I had a desire to manage to ensure that the working environment for all staff was positive.

“I also felt it was important for me to have a say in how things might be run so that I had more control over my own workload and career.

“With being a fee earner and manager, you have to learn at an enhanced level how to prioritise your time, work efficiently and multi-task. You polish those skills so well in juggling lots of different tasks that it naturally is then utilised in all aspects of your job – and sometimes outside of work too!

“As a Director, you also get an insight into the mechanisms of the business and why decisions are made. Understanding the reasoning for something being so important to a business really helps to focus your mind on those aspects of the fee earning role.”

Erin added: “Directorship provided me with the opportunity to take the next step in my career and accept new challenges such as managing teams, being part of the senior management team to help shape both the firms strategy and that of the department.”

Erin and Donna agreed that managing team members during periods of difficulty or sensitivity can be a challenge with a steep learning curve, but a surmountable one with the support of more experienced directors and colleagues.

Choosing the right career path

How firms choose to approach the issue of progression to partnership with junior staff members is central to encouraging ambition.

Presenting partnership or directorship as one of many viable options is crucial since there are plenty of ways to establish a rewarding career in law. We urge junior solicitors to consider directorship as something they can shape, rather than something into which they must fit.

Advising junior staff on choosing a path through the profession, Donna said: “Have the end goal in mind as you progress through your career, as you are always striving to work towards something – but be prepared to take different paths as you go along and learn more about what you enjoy and what suits your skillset.”

Erin’s approach resonated with her colleague’s thoughts: “Career progression is as much the responsibility of the individual as it is the firm’s.

“I would advise setting clear goals and identifying what you want from your career and the next steps in achieving this.

The approach to setting out your career should be a partnership or directorship and actively discussed with your management to ensure that you’re on the right path.”

Please contact us to speak to a member of our team.

Misconceptions over inquest process highlighted by George Gilbey investigation

Misconceptions over inquest process highlighted by George Gilbey investigation

By Jeremy Sirrell, Supervising Director, Palmers Solicitors

The inquest into the death of Gogglebox star George Gilbey began last month, hearing that Mr Gilbey’s injuries were “consistent with a fall from height”.

This series of tragic events, resulting in a formal investigation into the circumstances around the death, has brought to light the vast misconceptions on the public stage surrounding the inquest process.

The inquest process

While many inquests involve cases of public interest, there are plenty of misconceptions surrounding the process which can result in confusion.

It is often the case that inquests are run alongside investigations by other state authorities, such as the Police or the Health and Safety Executive (HSE).

The purpose of an inquest is to determine who the deceased was, when they died, where they died and how they died – but not to determine whether there was any criminal or other liability.

The inquest is running alongside a criminal investigation in which two men have been arrested and questioned.

Accordingly, inquests are often opened, and then adjourned after a preliminary hearing, whilst other organisations carry out investigations pertinent to their own specialism, usually with a view to determining whether there is a criminal liability of some kind.

In such circumstances, inquests will often start and then be adjourned off, waiting to receive a formal report or at least the result of that investigation. It may then resume in a second or third hearing and the inquest being finalised.

Does public interest impact the case?

From an inquest point of view, no.

Of course, there is significant public interest in this case due to the popularity of Gogglebox and there is likely to be some media presence as a result.

However, this will not affect the coroner in any way. The coroner will conduct their inquest with the concerns of the relatives of the deceased at the forefront of their mind.

Inquests are, first and foremost, an investigation into the death of a person and the most important people at an inquest are the relatives of that person who are given primacy of position.

This of course is very different to a criminal investigation where the relatives of the deceased will be regarded only as potentially useful witnesses during the investigation, with primacy given to state legislation and any potential breaches.

Here it is likely that the inquest will remain adjourned off for many months whilst the Police investigation continues and when it concludes it is likely to resume and with the additional information obtained from the Police during their investigation.

For advice on the inquest process, please contact Jeremy Sirrell at jeremysirrell@palmerslaw.co.uk  or get in touch with a member of our team.