For commercial landlords and investors
MEES for Commercial Landlords: EPC E Today, EPC B Proposed for 2031
Sviatoslav JerdetchiiCEO & Founder of Craftex. Updated , 5 min read
The short answer
Under MEES, commercial landlords in England and Wales can't let a building rated below EPC E without a registered exemption. The government plans EPC B from 2031 for buildings over 1,000 m², but it isn't law yet.
- EPC E has applied to all existing commercial lettings since 1 April 2023.
- The 2027 EPC C step has been dropped.
- Buildings under 1,000 m² are proposed to stay at E.
- Plan upgrades around lease ends, breaks and voids, starting now.
Many commercial landlords are still planning for EPC C in 2027 and B in 2030. That was the earlier proposal. The 2027 step has now been dropped, and the target has moved.
Today, MEES (the Minimum Energy Efficiency Standards) means you can't let a commercial building below EPC E. That applies in England and Wales unless a valid exemption is registered.
On 18 June 2026 the government said it intends to raise the bar to EPC B from 2031. That would apply to privately rented commercial buildings over 1,000 m², where the works are cost-effective. Not sure where your building stands? Book a site visit and we'll look at the works with you.
MEES for commercial landlords: the rules in October 2026
| Rule | Status | What it means |
|---|---|---|
| EPC E for new lettings and renewals | In force since 1 April 2018 | No new lease or renewal on an F or G building without an exemption |
| EPC E for all existing lettings | In force since 1 April 2023 | Letting an F or G building is a breach, even mid-lease |
| EPC C by 2027 | Dropped | No longer in the government's plans |
| EPC B from 2031, over 1,000 m² | Proposed (June 2026) | Where cost-effective; needs secondary legislation first |
| Buildings under 1,000 m² | Proposed to stay at E | No higher minimum planned for now |
| Seven-year payback and exemptions | Proposed to stay | You won't have to spend more than the works save over seven years |
The rules come from the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015. They cover buildings that need an EPC and are let on leases of six months to 99 years.
Who MEES applies to
If you let a commercial building in England or Wales on an ordinary lease, assume MEES applies to you.
It catches more than offices: shops, warehouses, industrial units, restaurants and clinics. Anything that needs an EPC is in. And it bites on existing leases too. A building that was fine when the tenant moved in can fall into breach because the law moved.
The MEES exemptions
You don't have to do the impossible. You can register an exemption on the government's PRS Exemptions Register. It usually lasts five years. The main ones:
- All relevant improvements made. Every improvement that pays back within seven years is done, and the building is still below the minimum.
- Consent refused. A tenant, superior landlord, lender or planning authority has refused consent for the works.
- Devaluation. An independent valuer confirms the works would cut market value by more than 5%.
- New landlord. A short, temporary exemption when you've just become the landlord.
Exemptions are personal to the landlord who registers them. If you sell, the buyer must deal with the building afresh.
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The penalties for breaching MEES
Local authorities enforce MEES through trading standards. For a commercial building let in breach for three months or more, the fine is the higher of £10,000 or 20% of rateable value. It is capped at £150,000 per breach. Shorter breaches carry lower fines, and the breach can be published.
The bigger costs are usually indirect: a building you can't relet, a lender that won't refinance and a buyer who prices in the upgrade.
Why EPC B by 2031 is closer than it looks
Work backwards from 2031.
Most commercial leases limit what a landlord can do while the tenant is in. So the natural windows for major works are lease ends, breaks and voids. If your next lease event is 2028, it may be your only chance before the deadline. Then add design, tendering and, in an occupied building, phased working.
There's a second trap. EPCs last ten years, and the method behind them has changed since many were issued. A new EPC on an older building can come out lower than its old one with nothing physical changed. That is especially true of gas-heated buildings. Know your real rating before you plan around an old one.
Five steps to take now
- Get a current picture. List every let building, its EPC rating, expiry date, floor area and next lease event. Is it over 1,000 m²?
- Model the upgrade. Ask an energy assessor what it would take to reach C and B, and the cost of each step.
- Line works up with lease events. Plan the biggest works for voids and lease ends. Use dilapidations settlements and planned refurbishments.
- Talk to tenants. Some works need their consent or access. Green lease clauses make future upgrades easier.
- Price it with a builder. Assessors model; contractors price. Together they tell you the real cost and the time on site.
What usually moves a commercial EPC
Every building is different. Take this as a list to discuss with your assessor, not a promise.
- Lighting. LED fittings with presence and daylight controls. Often the cheapest step.
- Heating and cooling. Replacing old gas boilers or ageing air conditioning, often with heat pumps.
- Controls. Time, zone and temperature controls, or a building management system.
- Fabric. Roof and wall insulation, glazing and sealing obvious air leaks.
- On-site generation. Solar panels on a suitable roof. See commercial solar installation.
How Craftex helps commercial landlords
We carry out the works that change an EPC: lighting, heating and cooling, and fabric. We work in occupied buildings as well as empty ones, with noisy work at night or at weekends where needed. Our landlord compliance service starts with a site audit. Our sustainable and low-carbon fit-outs keep what works and replace only what doesn't.
Occupied buildings are routine for us. At Portsoken House in Aldgate, we turned 1,550 sq m of warehouse into offices over seven months. We worked around tenants who stayed in occupation, at nights and weekends. At Beaumont House in Kensington, we replaced the lighting and wiring across 750 sq m in three weeks.
If an upgrade looks uneconomic, the building may have a better future as something else. Our guide to what to do with an empty office building compares the options. Design ideas are in our sustainable office design tips.
We take construction projects from £100,000 to £10M+. Want to know what your building needs? Book a site visit and we'll price the works around your leases.
