MEES compliance for commercial property
Quick answer
If you let commercial property in England or Wales, or plan to, the legal minimum today is EPC E. Since 1 April 2023 it has applied to existing leases as well as new ones, unless the letting is out of scope or exempt. EPC B from 2031 for larger buildings is a proposal, not law.
Where the rules stand (checked 19 October 2026)
The government's interim response, published 18 June 2026, says that “from 2031, it is proposed that all private rented buildings over 1,000 square metres in England and Wales will need to reach a higher standard of energy efficiency of EPC B, where cost effective”, and that “the intention is for buildings below 1,000 square metres to continue to be subject to the current minimum standard of EPC E”.
It confirms that “the previously proposed interim EPC C milestone for 2027 will not be taken forward”, that “existing flexibility mechanisms, including the 7-year payback test and exemptions, will remain in place”, and that the changes “will only take effect following the successful passage of secondary legislation through Parliament”.
The rules in force today are set out in the government's landlord guidance (last updated 5 May 2026): a minimum of EPC E to let a non-domestic building, unless a valid exemption is registered. Guidance that still quotes the earlier 2027 and 2030 dates is out of date.
What the law requires now in England and Wales
The rules are in Part 3 of the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 (SI 2015/962). A let property is “sub-standard” if its valid EPC is below band E (regulation 22), and its landlord “must not let the property unless regulation 29, or one or more of the exemptions in Chapter 4, applies” (regulation 27(1)).
| From | What is caught | Regulation |
|---|---|---|
| 1 April 2018 | Granting a new tenancy, or letting on a tenancy as a result of an extension or renewal | 27(2)(a) |
| 1 April 2023 | Continuing to let on an existing tenancy, even with no change of tenancy | 27(2)(b) |
When the EPC E minimum applies. Source: SI 2015/962 regulation 27(2), legislation.gov.uk, checked 19 October 2026.
A valid EPC is one entered on the register no more than 10 years before it is relied on, with no later EPC lodged since (regulation 22(c)). A breach “does not affect the validity or enforceability of any provision of the tenancy” (regulation 30).
Which properties and leases are in scope
Regulation 20 takes three groups out:
- Property that was not required to have an EPC under the 2007 EPC regulations and is not required to have one now (regulation 20(2)). See which buildings need an EPC. A listed building needs no EPC only where meeting the minimum energy performance requirements “would unacceptably alter it” (gov.uk).
- A tenancy for a term certain “not exceeding six months”, unless it allows renewal or extension beyond six months, or the tenant had been in occupation for a continuous period of more than 12 months when it was granted (regulation 20(3)(a)).
- A tenancy for a term certain “of 99 years or more” (regulation 20(3)(b)).
A letting outside the regulations needs no exemption, and an owner occupying its own building is not letting it. The separate EPC duty still applies on a sale or letting, with a fine of £500 to £5,000 based on the rateable value for not making one available (gov.uk, checked 19 October 2026).
The six exemptions and how to register one
In scope, an F or G property can only be let with an exemption on the PRS Exemptions Register. The government's landlord guidance says: “All exemptions apply from the point you register them”.
| Exemption (gov.uk name) | When it applies | Evidence to register | Lasts |
|---|---|---|---|
| 7 year payback exemption | A recommended measure would not pay back in energy bill savings within seven years of installation, so it is not a relevant improvement (regulation 28(3)). Measures that would pay back must still be made | 3 quotes from qualified installers and the cost calculations | 5 years |
| All improvements made exemption | All relevant improvements have been made, or none can be made, and the property is still below E (regulation 29) | The EPC and any other information relied on | 5 years |
| Wall insulation exemption | The only relevant improvements left are cavity, external or internal wall insulation, and a relevant person or an independent installer advises in writing that they are not appropriate because of their potential negative impact on the fabric or structure (regulation 28(2)) | The written opinion | 5 years |
| Third-party consent exemption | A consent the landlord needed, such as the tenant’s, a superior landlord’s or planning consent, was refused or given on conditions the landlord cannot reasonably meet (regulation 31) | Correspondence showing consent was needed, sought and refused or conditioned | 5 years. Where the tenant refused, only until that tenancy ends or is assigned |
| Property devaluation exemption | An independent surveyor on the RICS register of valuers reports that the measures would cut the market value of the property, or its building, by more than 5% (regulation 32) | The surveyor’s report | 5 years |
| Temporary exemption due to recently becoming a landlord | You became the landlord in one of the listed ways, such as buying a property that is already let, a lease granted under the Landlord and Tenant Act 1954 or a court order (regulation 33) | The date and circumstances | 6 months |
MEES exemptions. Sources: gov.uk landlord guidance (updated 5 May 2026) and SI 2015/962 regulations 28 to 33, checked 19 October 2026.
- Use gov.uk’s Register a private rented sector energy standards exemption service.
- Sign in with GOV.UK One Login. The way to sign in “changed on 5 May 2026”.
- Enter the property address and a valid EPC, then upload the evidence (up to 20 MB per file).
- Diarise the end date. When an exemption expires, “the landlord must try again to improve the property’s EPC rating” before registering a further one.
Exemptions “may not pass over to a new owner or landlord of a property upon sale, or other transfer”. On a sale or transfer “the exemption will cease to be effective”, so the new owner must improve the property or register its own exemption (gov.uk landlord guidance).
Enforcement and penalties
A local weights and measures authority enforces the rules for non-domestic property (regulation 34). Where it suspects a breach in the previous 12 months, it can serve a compliance notice asking for the EPC, the tenancy agreement and other documents, giving at least one month to reply (regulation 37). For a breach at any time in the previous 18 months it can serve a penalty notice, with a financial penalty, a publication penalty or both (regulation 38).
| Breach | Maximum financial penalty | Can also include | Regulation |
|---|---|---|---|
| Breach of regulation 27 lasting under 3 months when the penalty notice is served | “a financial penalty not exceeding whichever is the greater of” £5,000 and 10% of the rateable value, and it “must not exceed £50,000” | Publication penalty | 41(2) |
| Breach of regulation 27 lasting 3 months or more when the penalty notice is served | “a financial penalty not exceeding whichever is the greater of” £10,000 and 20% of the rateable value, and it “must not exceed £150,000” | Publication penalty | 41(3) |
| False or misleading information on the PRS Exemptions Register | “a financial penalty not exceeding £5,000” | Publication penalty | 41(4) |
| Failing to comply with a compliance notice | “a financial penalty not exceeding £5,000” | Publication penalty | 41(4) |
Non-domestic penalties, SI 2015/962 regulation 41. Source: legislation.gov.uk, latest revised text, checked 19 October 2026.
The rateable value is the one shown on the local non-domestic rating list when the penalty notice is served (regulation 41(5)). A publication penalty puts details of the breach, the property address and the penalty on the register for at least 12 months, plus the landlord’s name where the landlord is not an individual (regulation 39). A landlord can ask the authority to review a penalty notice, then appeal to the First-tier Tribunal (regulations 42 and 43).
What is proposed, and is not yet law
The box above quotes the government’s interim response of 18 June 2026, which followed its 2019 and 2021 consultations. The government “aims to introduce legislation and updated guidance at the earliest opportunity”, and says further detail, including “implementation of the threshold”, will come in a later response, so how the 1,000 square metres will be measured is not yet known. On 19 October 2026 the consultation page still listed only the interim response.
Scotland and Northern Ireland
Scotland
The England and Wales regulations do not apply. Since 1 September 2016, regulations under section 63 of the Climate Change (Scotland) Act 2009 have covered non-domestic buildings over 1,000 square metres that are sold or let to a new tenant, unless the building already meets energy standards equivalent to the 2002 building regulations. The owner must provide an EPC and an Action Plan from a section 63 advisor, then make the improvements or defer them by reporting operational ratings through annual Display Energy Certificates (gov.scot). Most of the new Energy Performance of Buildings (Scotland) Regulations 2025 are due to come into force on 31 October 2026, but a draft amendment now before the Scottish Parliament would move that date to 30 April 2028, so check the current position before relying on either date.
Northern Ireland
The 2015 regulations do not extend to Northern Ireland, where EPCs are required on sale, rent and construction under the Energy Performance of Buildings (Certificates and Inspections) Regulations (Northern Ireland) 2008. Check with the relevant Northern Ireland department whether any minimum standard applies to a commercial letting.
What to do now: a checklist for landlords
- Find the current EPC on gov.uk’s Find an energy certificate service. It counts only if it was lodged within the last 10 years and has not been replaced (regulation 22).
- Confirm the letting is in scope: the property needs an EPC, and the tenancy is not a fixed term of six months or less (with the two exceptions above) or of 99 years or more (regulation 20). Regulation 20 does not take out periodic tenancies.
- If it is F or G and in scope, do not grant, renew, extend or continue a lease until it reaches E or an exemption is registered.
- Price the measures in the recommendation report. For any that would not pay back within seven years, collect 3 quotes from qualified installers.
- Diarise lease events: a renewal or extension is a letting under MEES (regulation 27(2)(a)).
- Answer any compliance notice by its deadline. Failing to comply can bring a penalty of up to £5,000 plus publication (regulation 41(4)).
- For a privately let building over 1,000 square metres, record the gap to EPC B, but plan around 2031 as a proposal, not a deadline.