The Government has provided an update on Minimum Energy Efficiency Standards (MEES), giving commercial landlords a more realistic and manageable framework for the years ahead.

The biggest change is a shift away from the idea that all commercial buildings must reach EPC B. Instead, the new rules focus on larger, higher energy use buildings. Only commercial properties over 1,000 square metres will need to achieve a B rating by 2031, and only where the works are cost effective.

Smaller commercial buildings will stay at the current E requirement, with no new improvement deadline. The previously suggested EPC C requirement for 2027 has been dropped.

For many landlords, especially those with high street units or small offices, this brings welcome breathing space.

What this means for your property

If your building is over 1,000 sq m, now is the time to start planning. Many larger buildings will need upgrades, so early EPC assessments and cost reviews will help you understand what’s required. The familiar exemption routes remain available, including the seven year payback test and consent exemptions.

If your building is under 1,000 sq m, the pressure has eased. You’re not required to improve beyond an E rating, although voluntary upgrades may still make commercial sense. More efficient buildings continue to attract better tenants, lower running costs and stronger valuations.

Effect on transactions

MEES continues to influence how commercial property deals are structured. Landlords and tenants should ensure leases clearly set out who is responsible for energy efficiency works, how access will be managed, and how costs will be recovered.

In sales and purchases, EPC ratings and any registered exemptions remain key due diligence items. Lenders are also paying closer attention to EPC performance, particularly for larger assets that will be caught by the 2031 deadline.

Residential MEES

Although the commercial rules have been reset, residential MEES continues on its own path. The Government has confirmed that rented homes will need to reach a C rating by 2030. Residential EPCs will also move to a new assessment method, while commercial EPCs will keep the current system.

Listed residential buildings still require EPCs, but exemptions apply where works would harm the building’s character.

What’s still to come

Some details will be confirmed in secondary legislation, including how the 1,000 sq m threshold will be applied and how transitional arrangements will work. For now, landlords should plan on the basis of the published policy and keep an eye out for further updates.

In summary

The update gives commercial landlords long awaited clarity. Larger buildings now have a clear route to achieve a B rating by 2031, while smaller assets benefit from stability and reduced regulatory pressure. Residential MEES continues separately, with a C rating required by 2030.

The final position will be confirmed through legislation, so landlords should stay alert to further announcements.

For more information or guidance, contact our commercial property team on 0116 289 7000 or email info@bhwsolicitors.com.


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