MEES & Commercial Property EPC Rules 2026: The Full Guide

At a glance

• Current legal minimum: EPC band E for all non-domestic lettings — new tenancies since 1 April 2018, and all continuing lettings since 1 April 2023. Set by regulation 27 of the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 (SI 2015/962).
• Sub-standard means EPC F or G. A landlord cannot lawfully let, or continue to let, a sub-standard non-domestic property unless a valid exemption is registered.
• Six exemption types exist, most lasting 5 years and requiring self-certified evidence on the PRS Exemptions Register before they can be relied on. None survive a sale or transfer to a new landlord.
• Enforcement: Local weights and measures authorities can serve a compliance notice, then a penalty notice plus a publication penalty. There is a right of review, then a right of appeal to the First-tier Tribunal. Check GOV.UK for current penalty figures.
• What's proposed, not law: the government intends to raise the standard to EPC B for buildings over 1,000 sq m from 2031, subject to secondary legislation that has not yet been laid. A previously floated EPC C milestone for 2027 has been dropped. Buildings under 1,000 sq m are intended to remain on EPC E with no confirmed further deadline.
• Not every letting is covered — very short lettings (broadly 6 months or less) and very long leases (99 years or more) fall outside MEES.

What MEES is, and whether it applies to your letting

The Minimum Energy Efficiency Standards (MEES) are set out in the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 (SI 2015/962). Part 3 of the Regulations prescribes a minimum energy performance level for rented property, measured by the property's Energy Performance Certificate (EPC) rating, and prohibits letting below that level unless an exemption applies.

MEES applies to a letting only where all of the following are true:

1. The property is not a domestic dwelling — this covers most shops, offices, warehouses, and other commercial premises.
2. The property is legally required to have an EPC — broadly, if it has been constructed, sold, or let (or had an EPC-triggering change) within the last 10 years, it will usually need one.
3. The tenancy is granted for a fixed term of more than 6 months and less than 99 years.

If your letting meets all three tests and the EPC rating is F or G, the property is "sub-standard" for MEES purposes and the prohibition on letting applies unless you have a registered exemption. If any test is not met — for example a very short licence, or a 999-year long lease — MEES does not apply, and you may let the property regardless of its EPC rating.

The current legal minimum: EPC E

Since 1 April 2018, landlords have not been permitted to grant a new tenancy, or to extend or renew an existing tenancy, of a non-domestic property rated F or G. Since 1 April 2023, that prohibition widened to cover continuing lettings as well — meaning a landlord can be in breach simply by continuing to let a sub-standard property, even where no new tenancy has been granted and nothing else has changed. This is the single most important date in MEES: many landlords who assumed the rules only affected new leases were caught out when the 2023 extension took effect.

The government does not expect every property to reach EPC E. What it requires instead is that the landlord has made every improvement that is genuinely cost-effective. This is tested through the 7-year payback rule in regulation 28 of SI 2015/962: a recommended improvement only has to be made if the expected energy-bill savings over 7 years would exceed the cost of buying and installing it. If a measure fails that test — or there are simply no more relevant improvements available — the property may still be let, provided the position is registered as an exemption.

Exemptions and the PRS Exemptions Register

A landlord who cannot bring a property up to EPC E can still let it lawfully, but only by registering a recognised exemption on the Private Rented Sector (PRS) Exemptions Register before relying on it. Registration is self-certified — you upload the required evidence and confirm the exemption applies — but it must be done first; you cannot rely on an unregistered exemption retrospectively.

The six exemption categories are:

| Exemption | What it requires | Typical duration | |---|---|---| | 7-year payback | Quotes and cost calculations showing recommended measures fail the payback test | 5 years | | All improvements made | Evidence that every relevant improvement has already been carried out (or none exist) | 5 years | | Wall insulation | Written expert advice that insulation would damage the fabric or structure of the building | 5 years | | Third-party consent | Evidence that a tenant, superior landlord, freeholder, mortgagee or planning authority refused consent, or granted it on unreasonable conditions | 5 years, or until the tenancy ends where a tenant refused consent | | Property devaluation | A RICS-registered surveyor's report showing the works would cut the property's value by more than 5% | 5 years | | Recently became a landlord | Applies where you recently acquired the property in specified circumstances | 6 months |

A critical point landlords often miss: exemptions do not transfer with the property. If you sell or otherwise transfer a let property with an exemption registered, the exemption lapses on transfer. The new owner must either bring the property up to EPC E or register a fresh exemption before continuing to let it.

What's proposed for the future — and what is not yet law

Government policy for non-domestic MEES has been under review since consultations in 2019 and 2021. In its interim response of June 2026, the government confirmed the direction it intends to take, but was explicit that this is not yet in force:

• From 2031, it is proposed that private rented buildings over 1,000 square metres will need to reach EPC B, where cost-effective.
• Buildings under 1,000 square metres are intended to remain subject to the current EPC E minimum, with no set deadline for going further.
• The previously proposed EPC C milestone for 2027 will not be taken forward at all — it has been dropped, not merely delayed.
• Existing flexibility — including the 7-year payback test and the exemption categories above — is intended to remain available under any tightened standard.

The government's own wording is unambiguous on legal status: these changes "will only take effect following the successful passage of secondary legislation through Parliament," and it "aims to introduce legislation and updated guidance at the earliest opportunity." As at August 2026, no such secondary legislation has been laid. Until it is, EPC E remains the only legal minimum for every non-domestic letting, regardless of building size. Any adviser or article asserting that EPC C or EPC B is a current legal requirement for commercial property is describing an unenacted proposal, not the law — check GOV.UK before relying on a claim either way, as this area is under active policy development.

Enforcement and penalties

MEES for non-domestic property is enforced by local weights and measures authorities. If an authority believes a landlord may be in breach, it can serve a compliance notice requesting evidence — including the EPC that was valid at the time of letting, the tenancy agreement, and details of any energy efficiency works or exemption relied on — within 12 months of the suspected breach.

Where a breach is confirmed, the authority may issue a penalty notice imposing a financial penalty, together with a publication penalty: the details of the breach are published on the exemptions register, which members of the public can search. A landlord can request a review of the penalty by the enforcement authority, and if the penalty is confirmed, can appeal to the First-tier Tribunal. Penalty levels are linked to factors such as the property's rateable value and how long the breach has continued — always check GOV.UK for the figures currently in force rather than relying on a fixed number, as these are subject to change and vary by breach type.

Worked example

Priya, a fictional landlord, owns a small warehouse let on a 10-year commercial lease. The EPC, issued 4 years ago, rates the building F. She obtains three quotes for LED lighting and improved heating controls: the combined cost is £9,000, and the projected energy savings are £1,100 a year — comfortably clearing the 7-year payback threshold (£7,700 in savings against a £9,000 cost falls just short, so she also prices a cheaper lighting-only package that does clear the test). She carries out the lighting works, which lift the rating to E, and lets the property continue without needing an exemption at all.

Contrast this with a listed building down the road, where cavity wall insulation is the only remaining recommended measure but a heritage consultant advises in writing that it would damage the historic fabric. That landlord cannot reach EPC E through that measure, so before continuing to let, they register the wall insulation exemption on the PRS Exemptions Register, supported by the consultant's written opinion — and the letting can lawfully continue for the exemption's duration.

Common mistakes and risks

• Assuming MEES only bites on a new lease. Since 1 April 2023 it applies to every continuing letting — a property let for years without incident can suddenly be in breach with no new tenancy event at all.
• Relying on an exemption that was never registered. Believing improvements aren't cost-effective is not itself a defence; the exemption must be registered on the PRS Exemptions Register before it can be relied on.
• Assuming an exemption survives a sale. It doesn't. A buyer of a let, exempt property inherits none of the seller's exemption and must address the position immediately if they intend to continue letting.
• Treating the proposed EPC B/2031 change as current law. It is a policy intention pending secondary legislation, not a binding requirement — but landlords planning refurbishment cycles should still factor in the direction of travel.
• Leaving MEES responsibility unclear in the lease. The legal duty sits with the landlord, but who funds the works is a lease question. Silence on this point routinely causes disputes when improvement works become necessary.

What to do next

1. Check your EPC rating and its expiry date using the GOV.UK EPC finder, and confirm whether the property is legally required to have one at all.
2. Work out whether MEES applies to your specific letting using the three-part test above (non-domestic, EPC-required, term between 6 months and 99 years).
3. If the rating is F or G, get costed quotes for the recommendations on the EPC and run the 7-year payback calculation before assuming works aren't worthwhile.
4. If no cost-effective improvement gets you to E, identify which exemption genuinely applies and register it on the PRS Exemptions Register before letting or continuing to let — not after.
5. Address MEES in the lease — service charge clauses, alterations provisions and any green lease terms — so responsibility for future works is clear rather than assumed.
6. Track exemption expiry dates. Most exemptions last 5 years; treat the expiry as a deadline to reassess, not a formality.

This guide provides general information about the Minimum Energy Efficiency Standards as they apply to commercial property in England and Wales. It is not legal advice and is not a substitute for advice tailored to your specific building and lease. The law described was accurate as at August 2026 and is subject to change — always check GOV.UK and legislation.gov.uk for the most current position.

Last reviewed: August 2026 by a non-practising solicitor · Next review due: August 2027 or on legislative change.