The Government has confirmed its intention to take a revised and more targeted approach to strengthening Minimum Energy Efficiency Standards (MEES) for non-domestic private rented property in England and Wales.
In a written statement published on the 18th June 2026 by the Department for Energy Security and Net Zero, the Government said that, from 2031, privately rented non-domestic buildings over 1,000 square metres are expected to be required to meet a higher energy efficiency standard of EPC ‘B’, where cost effective. Buildings below 1,000 square metres are expected to remain subject to the current EPC ‘E’ minimum standard.
The update follows earlier consultations on raising non-domestic MEES to EPC ‘B’ across the wider commercial building stock from 2030. The Government has now indicated that it intends to focus the proposed EPC ‘B’ requirement on larger premises where the greatest benefits are expected to be delivered, while giving smaller businesses, landlords and high streets more flexibility to upgrade buildings over time.
The previously consulted interim EPC ‘C’ milestone for 2027 is not expected to be taken forward. Existing flexibility mechanisms, including the seven-year payback test and exemptions, are expected to remain in place, meaning only improvements that are practical, affordable and cost-effective should be required.
Although the proposed changes remain subject to secondary legislation, the direction of travel is clear: energy performance will continue to be an important consideration for commercial property owners, investors, landlords and occupiers. Larger assets are likely to face closer scrutiny, and portfolio planning will need to take account of future compliance, retrofit feasibility, lease events, capital expenditure and long-term occupational demand.
For clients assessing their portfolios, the immediate priority is to understand which assets may fall within the proposed 1,000 square metre threshold, what current EPC ratings show, where improvement opportunities exist and how any works can be phased sensibly alongside wider asset management plans.
Our Delivering Net Zero team works with clients across commercial, rural and mixed property portfolios to identify practical and commercially grounded routes to improved energy performance. Their experience and knowledge can help clients interpret evolving MEES requirements, assess risk across individual assets and portfolios, and make informed decisions about future investment.
Every building is different, and there is rarely a ‘one-size-fits-all' solution. The team can support clients with honest, transparent and reliable advice on the options available, from understanding EPC ratings and exemption routes to considering energy efficiency improvements, renewable energy opportunities and longer-term sustainability strategies.
By taking an early, evidence-led approach, landlords and occupiers can avoid rushed decisions, prioritise cost-effective measures and align compliance planning with wider business, investment and decarbonisation objectives.
The Government has said it will publish its consultation response in due course, with further detail on the policy and implementation of the proposed threshold. In the meantime, clients should use the additional time to review their portfolios, understand potential exposure and build a realistic plan for future energy performance improvements.
For support in assessing your portfolio or understanding what the revised MEES proposals could mean for your property, speak to our delivering net zero team.
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