Associate Megan Harris, in our Commercial Property team, explains the government's interim response on MEES for commercial property.
On 18 June 2026, the Government published an interim response to its 2019 and 2021 consultations on raising the Minimum Energy Efficiency Standards (MEES) for non-domestic private rented property in England and Wales. The response does not change the law, but it gives landlords, tenants and commercial property owners a clearer indication of the direction of travel.
MEES are rules that set the minimum energy efficiency level a property must meet before it can generally be let. They are based on the property’s Energy Performance Certificate (EPC) which rates energy efficiency from A, the best, to G, the worst. For commercial property, the rules currently mean that landlords cannot grant or continue certain lettings unless the property reaches at least EPC E, if it has a valid EPC, unless an exemption applies.
What is being proposed?
The key proposal is that from 2031, privately rented non-domestic buildings over 1,000 square metres would need to achieve an Energy Performance Certificate rating of B, where this is cost effective. This is a more targeted approach than earlier proposals, which would have applied the higher standard more widely across the commercial rented sector.
For buildings below 1,000 square metres, the Government’s current intention is that the existing minimum standard of EPC E will continue to apply. In practice, this may give smaller landlords and high street property owners more time and flexibility to plan improvements.
The response confirms that existing flexibility mechanisms and exemptions are expected to remain. Broadly, this means landlords should only be required to carry out improvements that are practical, affordable and cost effective. If works would not pay for themselves through energy savings within the relevant period, or if another exemption applies, the landlord may not have to complete them.
No EPC C milestone in 2027
The Government has also said that the previously proposed interim milestone of EPC C by 2027 will not be taken forward. That is significant because many landlords had been concerned about the practical difficulty of carrying out works in time, particularly where leases are already in place or where improvements require tenant co-operation.
Possible implications
Although further detail and secondary legislation are still needed, the direction is clear. Landlords of larger commercial buildings should start reviewing EPC ratings, lease terms and likely improvement costs. Tenants may see lower energy bills where upgrades are made, but may also face disruption while works are carried out, or negotiations about service charges and access.
Owners considering buying, selling, refinancing or redeveloping larger rented commercial property should also factor MEES into due diligence. A building with a poor EPC rating may require investment before 2031, which could affect value, timing and negotiations.
Conclusion
The interim response is not the final word, and the proposed EPC B requirement for larger buildings will only take effect if secondary legislation is passed. However, it gives the market a useful steer. Landlords and commercial property owners should use the time now to understand their buildings, check existing EPCs, review lease responsibilities and plan possible improvements.
For further information or legal advice, please contact law@blandy.co.uk or call 0118 951 6800.
This article is intended for the use of clients and other interested parties. The information contained in it is believed to be correct at the date of publication, but it is necessarily of a brief and general nature and should not be relied upon as a substitute for specific professional advice.
