Minimum Energy Efficiency Standards (MEES) regulations update
30th June, 2026
The Government has published its long-awaited interim response to the consultations on Minimum Energy Efficiency Standards (MEES) for non-domestic properties in England and Wales.
The announcement provides greater certainty for landlords and occupiers, although the proposals are narrower than many in the property sector had anticipated.
The key proposal is that, from 2031, privately rented non-domestic buildings larger than 1,000 square metres will be required to achieve a minimum EPC rating of B, where improvements are considered cost-effective. Smaller buildings, below the 1,000 square metre threshold, would continue to be subject to the current minimum standard of EPC E under the current proposals.
The Government has also confirmed that the previously proposed interim requirement for buildings to achieve EPC C by 2027 will not proceed. Existing flexibility mechanisms, including the seven-year payback test and current exemptions, are expected to remain in place.
This targeted approach is intended to focus investment on larger commercial properties, where the greatest energy savings and carbon reductions can be achieved and remove the burden from landlords of smaller commercial premises where it would likely be more challenging to make the necessary improvements to achieve a B rating.
Despite the removal of the interim requirement to achieve a C rating by 2027, landlords of larger commercial properties should not delay reviewing the energy performance of their portfolios and identifying assets that may now, or in the future fall below an EPC B rating. Undertaking energy audits, assessing potential improvement measures and incorporating energy efficiency upgrades into planned maintenance programmes can help spread costs over time and reduce the risk of future compliance issues. Early engagement with occupiers and professional advisers may also assist in developing asset strategies that support both regulatory compliance and wider sustainability objectives.
Although further legislation will be required to implement these changes, owners and investors with larger commercial assets are likely to view the announcement as providing much-needed clarity on the future direction of non-domestic MEES policy.
If you have any questions about MEES or any other matter concerning real estate please do get in touch with Christina Kettlewell, or another of our expert real estate solicitors.
Please note that this briefing is designed to be informative, not advisory and represents our understanding of English law and practice as at the date indicated. We would always recommend that you should seek specific guidance on any particular legal issue.
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