MEES Update: Commercial Buildings Could Need an EPC B Rating by 2031

Government Signals Next Phase of Commercial EPC Regulations

What Are the Current MEES Requirements?

Under the current regulations, it is unlawful to let most commercial properties with an EPC rating below E unless a valid exemption has been registered.

The regulations were initially introduced in:

• April 2018 for new leases
• April 2023 for all existing commercial leases

As a result, landlords have already been required to address the least efficient F and G rated properties within their portfolios.

What Is Being Proposed?

The Government’s long-term objective remains to improve the energy performance of the UK’s commercial building stock as part of its Net Zero strategy.

Previous consultations proposed:

However, following delays in the consultation process, industry sources now indicate that the EPC B deadline may be pushed back by approximately one year, requiring qualifying commercial properties to achieve EPC B by 2031.

Although final legislation has not yet been published, landlords should assume that EPC B remains the eventual target and begin planning accordingly.

Why This Matters

The challenge facing the commercial property sector is substantial.

Government estimates suggest that an EPC B requirement could bring approximately 85% of privately rented commercial buildings within the scope of MEES regulations, compared with around 10% under the original EPC E standard.

Many buildings currently rated EPC D, E or even C may require significant improvements to reach EPC B, including:

• Upgraded lighting systems
• Improved insulation
• Heating and cooling system upgrades
• Building management system improvements
• Renewable energy technologies such as solar PV
• Ventilation and controls upgrades

For larger and older buildings, achieving EPC B may require a strategic programme of works rather than isolated improvements.

Which Buildings Are Most at Risk?

Based on our experience working with commercial property owners across the South of England, the following building types are likely to face the greatest challenge:

Older Office Buildings

Properties constructed before modern energy efficiency standards often have inefficient heating systems, poor insulation and outdated lighting.

Industrial and Warehouse Buildings

Large-volume spaces can be difficult to heat efficiently and often suffer from outdated building services.

Retail Units

Many retail properties have inherited older HVAC systems and lighting installations which can significantly impact EPC performance.

Multi-Let Commercial Buildings

Where landlords have limited control over tenant areas, coordinating improvements can become more complex.

Why Landlords Should Act Now

Waiting until legislation is finalised could be an expensive mistake.

Many commercial energy improvements require:

• Capital investment planning
• Tenant consultation
• Lease event coordination
• Procurement and installation time
• Updated EPC assessments

Properties that delay action may find themselves competing for limited contractor availability as deadlines approach.

Early action provides several advantages:

• Reduced compliance risk
• Better budgeting and cashflow management
• Improved tenant retention
• Lower operational energy costs
• Enhanced asset value
• Stronger ESG credentials

How a Commercial EPC Can Help

The first step is understanding where your building currently stands.

An up-to-date Commercial EPC can identify:

• Current EPC rating
• Key areas of energy inefficiency
• Recommended improvement measures
• Potential EPC uplift opportunities

In many cases, we find that relatively straightforward improvements can deliver significant rating improvements when implemented strategically.

How Energy Report Can Help

At Energy Report Limited, we help commercial property owners, landlords and asset managers navigate an increasingly complex compliance landscape.

Our services include:

• Commercial EPCs
• MEES Compliance Assessments
• EPC Improvement Reports
• SBEM Calculations
• Dynamic Energy Modelling
• Decarbonisation Strategies
• PAS 2038 Consultancy
• BREEAM Assessments

With over 17 years of experience in building energy compliance, we provide practical, cost-effective advice that helps clients plan ahead and avoid costly surprises.

Final Thoughts

While the final details of the revised MEES regulations are still being confirmed, one message is clear: commercial buildings are expected to become significantly more energy efficient over the coming years.

For landlords with properties currently rated C, D or E, now is the time to understand the potential impact and develop a roadmap towards compliance.

The buildings that perform best in the future will be those that start planning today.

Need advice on your commercial property’s EPC rating?

Contact Energy Report Limited for a Commercial EPC, MEES compliance review or EPC improvement strategy and ensure your building is ready for the next phase of commercial energy efficiency regulations.