Energy ratings now decide whether many commercial buildings can be let at all. The rules are known as the Minimum Energy Efficiency Standards, or MEES. Here is where they stand after the government’s announcement in June 2026.
The rule today
A landlord of a commercial property in England or Wales generally may not let it, or continue to let it, if its EPC is below E, unless a valid exemption is registered. The rule has applied to new lettings since April 2018 and to all existing lettings since 1 April 2023. Penalties can reach £150,000 per breach.
What changed in June 2026
- Buildings over 1,000 square metres will need to reach EPC B from 2031, where it is cost-effective. That is a year later than the 2030 date first proposed.
- Buildings under 1,000 square metres stay at EPC E, with no date set for a higher standard.
- The EPC C step proposed for 2027 has been dropped.
The government described this as an interim response. The changes need new regulations before they take effect, and a full response is expected later in 2026, including on penalties and on duties for tenants.
The exemptions
Exemptions must be registered on the government’s PRS Exemptions Register and most last five years. The main ones are:
- the improvements would not pay for themselves in energy savings within seven years;
- all the relevant improvements have been made, or none are possible;
- a consent needed for the work, from a tenant, a superior landlord or the council, has been refused;
- a surveyor reports that the work would reduce the property’s value by more than 5%;
- you have recently become the landlord, which gives six months.
What owners should do now
Check the rating and its date. EPCs last ten years, and an older certificate may not reflect the building, for better or worse.
Plan improvements around lease events. The cheapest time for work is when the building is empty between tenants or being refurbished anyway.
Bring the rating into any decision about the building. If a building over 1,000 square metres is unlikely to reach B economically, that affects whether to refurbish, convert or sell it. For smaller buildings, E remains the line, but buyers and tenants increasingly look for better.
This guide is general information, not legal advice on a particular property. A solicitor and an accredited energy assessor can confirm what applies to yours.