MEES update: Government revises EPC B plans for commercial property
Monday 27th July 2026
Our previous article on the FAQs on Minimum Energy Efficiency Standards (MEES) and energy performance certificates (EPCs) in commercial property explained the government’s proposals to increase minimum energy efficiency standards for privately rented non-domestic buildings.
Since then, the government has published an interim response to its consultations on strengthening MEES in England and Wales, providing some much-needed clarity on the future direction of travel.
The headline change is that the proposed interim requirement for all rented commercial properties to achieve an EPC rating of C by 2027, will now not be introduced. Instead, the government has decided not to take forward the EPC C milestone, giving landlords and tenants more time to plan and implement energy efficiency improvements.
The government has also revised its approach to the longer-term EPC B target. Rather than applying to all rented commercial properties, the requirement is now intended to apply only to privately rented non-domestic buildings exceeding 1,000 square metres, where it is cost-effective to carry out the necessary improvements. The target date has also been pushed back from the previously proposed 2030 deadline, to 2031.
For smaller commercial properties (those below 1,000 square metres), the government’s current intention is that the existing minimum standard of EPC E will remain in place, with no fixed deadline for further improvements beyond that level.
Importantly, existing flexibility mechanisms, including exemptions and the seven-year payback test, are expected to remain available, meaning landlords will only be required to undertake improvements that are practical, affordable and cost-effective.
While this announcement provides useful guidance, it is not yet law. The proposed changes will require secondary legislation before they come into force, and further details are expected in the Government’s full response to the consultations.
For landlords, investors and occupiers of larger commercial premises, the future approach remains clear: energy efficiency will continue to be an increasingly important consideration in acquisitions, asset management and lease negotiations. However, the revised proposals provide greater flexibility and a longer timeframe than many in the market had anticipated.
To discuss how these regulations may affect you, please get in touch with a member of our commercial property team.
