MEES Regulations for Commercial Landlords

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MEES Regulations for Commercial Landlords: A Complete 2025 Guide for Non-Domestic Property Owners

As sustainability moves to the centre of UK property law, MEES regulations for commercial landlords have become one of the most critical compliance requirements in the real estate sector. For portfolio managers, business owners, and commercial landlords, understanding commercial property EPC regulations .

This detailed guide explains the MEES legal framework, key deadlines, compliance obligations, risks of non-compliance, and how upcoming new EPC regulations 2025 for commercial property will reshape the market. 

What Are MEES Regulations for Commercial Landlords?

The Minimum Energy Efficiency Standards (MEES) were introduced by the UK government to improve the energy performance of rented buildings. They apply to non-domestic (commercial) properties as defined under the Energy Efficiency (Private Rented Property) Regulations 2015.

Under MEES, a commercial property must meet a minimum EPC rating before it can be legally let. The standards were introduced to help the UK reach its long-term net-zero commitments and encourage landlords to improve older and energy-inefficient buildings.

What Is the Minimum EPC Rating for Rented Commercial Property?

As of now, the minimum EPC rating for rental under the MEES regulations is:

Minimum Requirement: EPC Rating E

Landlords cannot grant a new lease or continue an existing one for a non-domestic property if the building has an EPC rating of:

  • F-rated commercial property

  • G-rated commercial property

These are classified as “sub-standard” and illegal to rent unless an exemption is registered.

But MEES is evolving quickly, and tougher rules are coming.

New EPC Regulations 2025: What Commercial Landlords Must Prepare For

The UK government has proposed major changes to commercial property EPC regulations, expected to come into force by 2025, with more phased updates by 2027 and 2030. These changes aim to push commercial buildings toward higher efficiency standards.

Here’s the expected timeline:

Phase 1 – 2025: EPC Rating C Required for New Leases

For new leases, commercial properties must achieve:

  • Minimum EPC rating C by 2025

This will drastically affect thousands of older buildings—especially offices, retail units, warehouses, and industrial spaces with outdated insulation and old heating systems.

Phase 2 – 2027: EPC Rating C for All Existing Leases

By 2027, it is expected that:

  • All rented commercial properties (new and existing) must have EPC C or better

This extends compliance to ongoing tenancies, not just new leases.

Phase 3 – 2030: EPC Rating B for All Commercial Properties

The government’s long-term goal is:

  • Minimum EPC rating B by 2030

This will require significant retrofitting investment, especially for large or old commercial buildings.

Commercial Property EPC Regulations

Commercial Property EPC Regulations: Who Must Comply?

MEES applies to most non-domestic properties, including:

  • Offices

  • Retail shops and supermarkets

  • Restaurants, cafés, and hospitality units

  • Warehouses and industrial units

  • Mixed-use buildings with commercial space

  • Commercial units in multi-let buildings

  • Business centres and serviced offices

However, the following are typically exempt:

  • Properties with an EPC valid for 10 years rated A–E

  • Listed buildings where alterations affect character (case-specific)

  • Spaces rented for less than 6 months (with no right to renew)

  • Leases of more than 99 years

  • Properties without heating or ventilation systems

Even exempt properties often require documented evidence to avoid penalties.

What Happens If You Own an F-Rated Commercial Property?

A F-rated commercial property (or G-rated) is categorised as sub-standard under MEES. This means:

  • You cannot legally let the property.

  • You cannot renew an existing tenancy agreement.

  • You cannot extend or modify an active lease.

  • You may face financial penalties for continuing rentals.

Before a tenancy is granted or renewed, you must upgrade the property to meet the minimum EPC standard or register a valid exemption.

Financial Penalties for Non-Compliance with MEES

MEES has strict financial consequences. Penalties depend on the property’s rateable value and scale of breach.

Penalty Bands:

  • Less than 3 months of breach:
    Up to £5,000 or 10% of rateable value (whichever is higher)

  • More than 3 months of breach:
    Up to £10,000 or 20% of rateable value

  • Publication penalty:
    The landlord’s name and details of the breach may be published online, damaging reputation and investor confidence.

  • For high-value commercial properties, fines can exceed £150,000.

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FAQ

Find Out Answers Here

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The Minimum Energy Efficiency Standards (MEES) require commercial landlords to ensure their rented properties meet a minimum EPC rating. These rules aim to reduce carbon emissions and improve building efficiency across the UK.

Currently, the minimum EPC rating is E.
Properties rated F or G are considered sub-standard and cannot be rented out unless a valid exemption is registered.

Yes. Under new EPC regulations 2025 for commercial property, the minimum requirement is expected to rise to:

  • EPC C by 2025 (for new leases)

  • EPC C by 2027 (for all non-domestic rentals)

  • EPC B by 2030

All landlords who rent non-domestic (commercial) buildings—such as offices, shops, warehouses, and restaurants—must comply. Some exemptions apply, but they must be formally registered.

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