Published on:
15 January 2025
Updated on:
15 January 2025
Read time:
3 minutes
As the UK moves towards its net-zero carbon goals, commercial property owners face increasingly stringent energy efficiency requirements.
With approximately 130,000 properties at risk of becoming unlettable by 2027, understanding and acting on these regulations is more critical than ever.
MEES regulations set minimum energy efficiency standards for commercial properties in England and Wales. Introduced as part of the government's commitment to reaching net zero by 2050, these regulations require commercial properties to meet specific Energy Performance Certificate (EPC) ratings to be legally lettable.
From April 2023, all commercial properties must maintain a minimum EPC rating of 'E' or above to be legally let. This requirement applies to both new tenancies and existing leases, marking a significant shift from previous regulations that only affected new lettings.
Property owners must ensure their buildings maintain a minimum 'E' rating and hold valid EPCs throughout their lettable period. Local authorities enforce these regulations with substantial penalties for non-compliance:
The regulatory landscape for commercial properties is set to become significantly more demanding as the UK government pursues its Net Zero target by 2050.
The Government is expected to issue the following changes:
2025:
2027:
2030:
Approximately 28% of commercial properties are currently rated 'D' or lower, with research showing that around 73% of office spaces in England and Wales fall into this category. These upcoming changes present significant challenges for property owners. Each phase provides a two-year "compliance window," during which owners must either meet the required rating or demonstrate that they have implemented the highest feasible improvements within cost-effective limits.
The government's commitment to improving energy performance standards aligns with increasing market demand for low-carbon commercial spaces. 'Green' workspaces and retail units are becoming increasingly attractive to organisations focused on environmental responsibility and long-term sustainability.
EPCs assess two main factors:
EPCs remain valid for 10 years, but with rapidly evolving standards, forward-thinking property owners should aim for higher ratings now to avoid multiple upgrades.
Selecting a low-carbon office building isn't just about environmental responsibility – it's a strategic business decision. We're seeing clients achieve significant operational savings while meeting their sustainability goals and creating healthier, more productive workspaces for their teams.
Valid exemptions include:
Unlike residential properties, commercial buildings have no high-cost exemption cap, emphasising the importance of strategic improvement planning.
While compliance requires investment, the benefits are substantial:
As office design and fit out experts, OP recommends the following approach:
Q: When do the key EPC MEES regulations deadlines come into effect?
A: EPC 'C' by 2027 and EPC 'B' by 2030.
Q: What are the penalties for non-compliance?
A: Up to £150,000 depending on breach duration and property value.
Q: Can I still let my property if it doesn't meet requirements?
A: Only if you have a registered valid exemption.
Don't wait until the deadlines approach to begin your energy efficiency journey. Contact OP today to discuss how we can help you meet and exceed MEES regulation requirements while maximising your property's value and appeal to tenants.