The UK Government has released a significant update to the Minimum Energy Efficiency Standards (MEES) for the non‑domestic private rented sector, setting a new direction for how commercial buildings will be regulated over the next decade. This update follows years of consultation (2019 and 2021) and extensive engagement with industry, investors, and local authorities.
A More Targeted, Proportionate MEES Framework
The Government has confirmed a revised approach that maintains ambition where it delivers the greatest impact, while easing pressure on smaller businesses and landlords. The key change is a shift away from a blanket requirement across all commercial buildings, instead focusing on the largest and most energy‑intensive premises.
Key Changes Announced
1. EPC B Requirement for Large Buildings (from 2031)
From 2031, private‑rented non‑domestic buildings over 1,000 m² in England and Wales will be required to meet EPC B, where cost‑effective. This is a major shift from the previously proposed universal uplift and is designed to target the buildings with the highest potential for energy savings. Initial modelling suggests tenants in these larger buildings could save £360 million per year in energy costs by 2031.
2. Smaller Buildings Remain at EPC E
Buildings below 1,000 m² will continue to be regulated under the current EPC E minimum standard, with no new deadlines for further uplift. This provides additional flexibility for SMEs and high‑street businesses.
3. EPC C by 2027 – No Longer Going Ahead
The previously consulted interim milestone of EPC C by 2027 has been dropped. This gives landlords and tenants more time to plan retrofit works in line with lease cycles and capital investment strategies.
4. Existing Flexibility Mechanisms Remain
The Government has confirmed that the current mechanisms will stay in place, including:
7‑year payback test
Exemptions framework These ensure that only practical, affordable, and cost‑effective improvements are required.
5. Secondary Legislation Still Required
The uplift to EPC B for large buildings will only take effect following the successful passage of secondary legislation through Parliament.
What This Means for Landlords and Occupiers
For landlords of large commercial buildings (>1,000 m²):
You should begin planning for EPC B compliance now. While 2031 may seem distant, deep retrofit projects, HVAC upgrades, and fabric improvements require long lead times.
For smaller landlords:
Your obligations remain unchanged for now. EPC E continues to be the minimum standard, with no new deadlines for further uplift.
For tenants:
Expect improved building performance and reduced energy bills in larger premises. The Government’s modelling indicates substantial long‑term savings.
Why This Matters
This targeted approach focuses regulatory effort where it will have the greatest impact on energy savings and carbon reduction, while avoiding disproportionate burdens on smaller businesses. It also aligns with the UK’s broader net‑zero strategy by prioritising high‑impact buildings.
Source
Official Written Statement (HCWS126), 18 June 2026:
https://questions-statements.parliament.uk/written-statements/detail/2026-06-18/hcws126