The Government has provided an update on its approach to strengthening Minimum Energy Efficiency Standards (MEES) in the non-domestic private rented sector, following previous consultations and extensive engagement with industry, investors, local authorities, and wider stakeholders.
Earlier proposals (2019 and 2021) set out plans to raise MEES requirements to EPC B across the non-domestic private rented sector, reflecting the role of energy efficiency in reducing energy bills, strengthening energy security, and supporting the transition to net zero.
Following further consultation and feedback from stakeholders, the Government has now confirmed a revised and more proportionate approach. The updated framework maintains long-term ambition while introducing greater flexibility for smaller businesses and landlords.
A more targeted approach to MEES
Under the revised proposal, from 2031 it is intended that non-domestic private rented buildings over 1,000 square metres in England and Wales will be required to meet an EPC B standard, where cost effective.
This represents a more targeted approach compared to earlier proposals, which would have applied across the entire non-domestic building stock.
Government modelling suggests that improving the largest premises could deliver significant benefits, including estimated tenant energy cost savings of around £360 million per year by 2031.
Buildings below 1,000 square metres will continue to be subject to the current EPC E minimum standard.
Removal of interim milestone
The previously proposed interim EPC C milestone for 2027 will not be taken forward. This change provides additional time for landlords and tenants to plan investment and retrofit activity in a way that aligns with building requirements, lease structures, and financial planning.
Flexibility and practical implementation
Existing flexibility mechanisms will remain in place, including the 7-year payback test and exemptions. These ensure that only measures which are practical, affordable, and cost-effective are required.
The changes to raise MEES to EPC B for larger buildings will be implemented following the successful passage of secondary legislation through Parliament.
Implications for the sector
The revised approach focuses regulatory requirements where they can deliver the greatest impact, particularly in larger, higher-energy-use buildings. At the same time, it maintains baseline standards for smaller properties while offering greater flexibility for SMEs and high street landlords.
Catherine Garrido, Managing Director at Quidos, commented:
“We welcome the increased clarity and the move towards more targeted requirements for the non-domestic sector. However, as always, the detail will be crucial in ensuring the policy is practical and deliverable in practice. We would also like to see further clarity on the longer-term trajectory for smaller properties as soon as possible, to help landlords and businesses plan and invest with confidence.”
This balance is intended to support investment in building improvements, reduce exposure to volatile energy prices, and strengthen UK energy security over the long term.
Next steps
The Government will publish its formal consultation response in due course, providing further detail on implementation, regulatory design, and supporting guidance. Legislative changes will follow at the earliest opportunity.
Quidos will continue to monitor developments closely and support professionals across the sector as the policy framework evolves.
Source: https://questions-statements.parliament.uk/written-statements/detail/2026-06-18/hcws126
