MEES for Commercial Buildings — the landlord's compliance guide

The Minimum Energy Efficiency Standards (MEES) make it unlawful to let a commercial property in England and Wales that fails the required EPC rating. Since April 2023 the current minimum is Band E for all lettings. The government has consulted on raising the standard to Band C by 2027 and Band B by 2030 — a change every commercial landlord needs to plan for now.

The current MEES rules

Since 1 April 2023 it is unlawful to continue to let any non-domestic property in England and Wales with an EPC rating of F or G, unless a valid exemption is registered on the PRS Exemptions Register. Enforcement is by the local Trading Standards authority, with penalties up to £150,000 per breach depending on rateable value and duration.

The 2027 & 2030 uplift

The government's current published direction of travel is a minimum of Band C by 2027 and Band B by 2030 for all non-domestic lettings. Portfolio landlords are already commissioning staged upgrade programmes because most 1970s–1990s stock cannot reach Band C on lighting and controls alone.

The 7-year payback test

For non-domestic MEES the improvement measures a landlord is required to install are limited to those with a simple payback of 7 years or less. Every measure in our NDEAR advice reports is flagged against this test, so a landlord can separate the improvements they legally must fund from optional deeper decarbonisation measures.

Registered exemptions

A property may continue to be let below the minimum standard for up to 5 years if a valid exemption is registered — for example, if all cost-effective measures have already been installed and the property still fails, if a third-party consent (freeholder, planning, tenant) has been refused despite reasonable efforts, or if a qualified surveyor confirms improvements would devalue the property by more than 5%.

Building the compliance file

A defensible MEES compliance pack contains: the current EPC and SBEM model, the NDEAR (or equivalent advice report) showing which measures pass and fail the 7-year test, evidence of installed measures with post-works models, and — where relevant — the exemption registration with supporting documentation. We produce this pack as a matter of course for every MEES landlord we work with.

Frequently asked questions

What is the current MEES rating for commercial property?

Since April 2023 the minimum EPC rating for any commercial letting in England and Wales is Band E. Properties rated F or G cannot legally continue to be let unless a valid exemption is registered on the PRS Exemptions Register.

When does MEES rise to Band C and Band B?

The government's consulted-on direction of travel is Band C by 2027 and Band B by 2030 for all non-domestic lettings. Final regulations are pending. Landlords should assume the timetable will hold and plan staged upgrade programmes now, because most older commercial stock cannot reach Band C without meaningful fabric and services investment.

What is the £3,500 cost cap?

The £3,500 (including VAT) cost cap applies to the DOMESTIC MEES regime, not commercial. For commercial MEES there is no monetary cap — landlords must install any improvement measure with a simple payback of 7 years or less. This is why the 7-year payback test is the critical filter in every NDEAR advice report.

What are the penalties for non-compliance?

Penalties for letting a sub-standard commercial property are calculated on rateable value and breach duration, up to a maximum of £150,000 per breach. A public notice of non-compliance is also published on the PRS Exemptions Register, which most institutional tenants and lenders now check as part of due diligence.

My building is rated F or G — where do I start?

Commission a Commercial EPC (if the current one is invalid) and an NDEAR advice report. The advice report tells you (a) which improvement measures pass the 7-year payback test, (b) what EPC band each raft of measures would achieve, and (c) whether the property qualifies for a registered exemption. Once you have that pack, decisions on funding, phasing and exemptions become straightforward.

Commission a MEES compliance advice report

Call 01392 980077 or get a quote online.