What the New EPC B Rules Mean for Your Buildings
The Government has issued its interim response on Minimum Energy Efficiency Standards (MEES) for privately rented non-domestic buildings in England and Wales. MEES sets the minimum energy performance a commercial rented building must meet before it can legally be let. The latest position changes the timeline for some buildings while leaving others exactly where they are.
Here is what has changed, what it means for your estate, and how to respond without overreacting.
What the MEES Update Changes
MEES is tied to a building’s Energy Performance Certificate (EPC), which rates efficiency from A (best) to G (worst). Since April 2023, the minimum standard for privately rented non-domestic property has been EPC E, unless a valid exemption applies. That EPC E baseline still stands.
The new element is a more targeted approach than many in the sector expected:
- From 2031, privately rented non-domestic buildings over 1,000 square metres are expected to need an EPC B rating, where this is cost effective.
- Buildings under 1,000 square metres are expected to remain at the current EPC E minimum.
- The previously proposed 2027 EPC C milestone will not go ahead, removing a near-term deadline many owners and occupiers had been planning around.
In short: the strongest new requirement is aimed at larger rented commercial buildings, while smaller premises get more breathing space.
Why This MEES Position Is Interim, Not Final Law
It is worth being clear: this is the Government’s stated intention, not settled legislation. The move to EPC B for larger buildings will only take effect once secondary legislation has passed through Parliament, and more detailed guidance is still expected — including exactly how the 1,000 square metre threshold will work in practice. Plan around the direction of travel, but check the current position before making firm commitments.
What the MEES Changes Mean in Practice
The policy keeps important flexibility. Existing mechanisms, including the seven-year payback test and exemptions, are expected to remain. That means landlords should only need to carry out improvements that are practical, affordable and cost effective. Not every building can be improved the same way — age, structure, use, plant condition, lease arrangements and access all shape what is sensible.
For most customers, the message is simple: this is not a reason to panic, but it is a reason to plan.
- Larger landlords should identify which buildings are over 1,000 square metres, check current EPC ratings, and plan the works that would make the biggest difference.
- Tenants in larger premises should ask landlords what the improvement route looks like — especially where energy bills are high or leases run beyond 2031.
- Smaller premises are not off the hook. EPC E still applies, and energy costs, occupier expectations, finance requirements and sustainability reporting are all moving in the same direction.
The benefits go well beyond compliance. A building that uses less energy is usually cheaper to run, easier to manage and more attractive to occupiers. The Government estimates the policy could help tenants in larger rented non-domestic buildings save up to £360 million a year on bills by 2031, while cutting energy demand and carbon emissions.
The best opportunities come from joining energy upgrades to work that already needs doing — replacing ageing plant, improving controls, upgrading lighting, improving metering or planning smarter maintenance. Early planning reduces disruption, controls cost, and makes sure improvements fit the way the building is actually used.
How DMA Can Help You Prepare for MEES
We help customers make buildings work better. In this context, that means helping you understand your EPC position, prioritise sensible improvements, plan investment, manage delivery and keep the evidence you need.
If you are not sure where your buildings stand, the right first step is a clear view of your current performance. From there, the path is straightforward: assess, plan, prioritise and deliver — at a pace that fits your buildings, your leases and your budget.
The long-term direction has not changed. Energy performance will matter more to running costs, asset value, leaseability and sustainability commitments. The right response is a clear plan, not a last-minute rush.
Speak to our Energy & Sustainability team to understand your MEES position and plan your next steps.
