MEES update: EPC B required for large rented buildings by 2031
The government has set out its long-awaited plans for strengthening the Minimum Energy Efficiency Standards (MEES) for privately rented commercial buildings. Here is what we know.
What is the latest update on the non-domestic MEES?
On 18th June 2026, the government published a brief “interim update” on MEES – which sets out its plans to raise the minimum EPC rating requirement for privately rented non-domestic buildings.
What it confirms:
- From 2031, all private rented buildings over 1,000 square metres in England and Wales will need to reach EPC B, where cost effective
- Private rented buildings below 1,000 square metres will continue to be subject to the current minimum standard of EPC E
- The previously proposed interim EPC C milestone for 2027 will not be taken forward
- Existing flexibility mechanisms, including the 7-year payback test and exemptions, will remain in place, ensuring that only improvements that are practical, affordable and cost-effective will be required
Finer details are to follow – but it will provide some welcome clarity for commercial landlords, who have been waiting for confirmation on changes to MEES since the government first started consulting in 2019.
When will we know more?
This was a short, one-page update. The government says further details and implementation of the threshold will be set out in the forthcoming government response to the public consultations.
The government says it aims to introduce legislation and updated guidance soon, but will work with stakeholders to get the detail right.
The changes to raise MEES to EPC B for larger buildings will only take effect following the successful passage of secondary legislation through Parliament – but it is very likely to go ahead.
Why EPC B requirements are targeted at large buildings
The government says it wants to take a targeted approach to strengthening the MEES, focused on supporting businesses that rent larger premises by helping to cut energy costs and improve energy efficiency.
It says that this will deliver the greatest benefits, helping tenants in the largest rented buildings save energy and reduce their bills by £360 million per year by 2031. It is also expected to lower the energy demand from rented non-domestic buildings on the energy system – a move that will help strengthen UK energy security and meet national carbon reduction targets.
According to government figures, while only 7% of non-domestic buildings are over 1,000m², they account for approximately 50% of the floor space and total energy used in non-domestic buildings. So, a targeted approach can achieve a significant impact without placing a disproportionate burden on SMEs and high street landlords.
How many buildings will be affected?
We don’t know exactly. The UK has roughly 2.23 million non-domestic buildings, but only around 156,100 (7%) of that total stock exceeds the 1,000sqm threshold.
Of those 156,100, only the privately-rented buildings will fall under the MEES requirements.
Factories, warehouses, shops and offices are typically the largest buildings, accounting for more than two thirds of all non-domestic floorspace. So, these types of buildings will be more affected than others.
Can I gain exemption from non-domestic MEES?
Yes, in certain circumstances. The government says it will keep existing “flexibility mechanisms” that give some buildings exemption from MEES. These are:
- The seven-year payback test: Measures required to improve the rating of a property should be projected to pay for themselves in seven years or less. Otherwise, you can apply for MEES exemption.
- New landlord temporary exemption: This is generally available for 6 months in specific circumstances.
- Property devaluation exemption: you will ned a RICS surveyor report that proves energy efficiency measures would reduce the market value by more than 5%.
- Third-party consent exemption: Energy efficiency measures often require third-party consent – e.g. from tenants, a superior landlord, local authority or mortgage lenders. You can seek MEES exemption if you can prove that third-party consent was requested and refused, or was granted with a condition that cannot reasonably be met.
- Wall insulation exemption: There is a special provision for circumstances in which cavity wall insulation, external wall insulation systems, and internal wall insulation systems should not be installed.
- All improvements made: Where you can show you have made all ‘relevant energy efficiency improvements’ (or there are none that can be made), and the property remains below the EPC level required.
You will need to apply for an exemption – get in touch with us for support with this.
Advice and support
Concept’s consultants have been supporting commercial landlords with MEES compliance since the regulations came into force in 2018.
We can help you:
- Review existing EPCs
- Commission and produce EPCs for any buildings where one is not in place
- Identify and model efficiency improvements required to most cost-effectively meet the requirement
- Develop a MEES action plan to implement the measures and/or apply for relevant exemptions
Get in touch for no-obligation advice.
