GOVERNMENT CONFIRMS NEW DIRECTION FOR NON-DOMESTIC MEES

GOVERNMENT CONFIRMS NEW DIRECTION FOR NON-DOMESTIC MEES

The UK Government has published its interim response to the 2019 and 2021 consultations on strengthening Minimum Energy Efficiency Standards (MEES) for the non-domestic private rented sector in England and Wales.

The key change is a more targeted approach. Rather than applying higher standards across all commercial properties, the government intends to require private rented buildings over 1,000m² to achieve a minimum EPC B rating by 2031, where improvements are cost-effective. Smaller rented commercial properties will continue to be subject to the current EPC E minimum standard.

The previously proposed requirement for buildings to achieve EPC C by 2027 has been withdrawn, providing landlords and tenants with additional time and flexibility to plan energy efficiency improvements. Existing exemptions and the 7-year payback test will also remain in place to ensure only practical and cost-effective measures are required.

The government estimates the changes could save tenants in larger commercial buildings up to £360 million per year in energy bills by 2031, while supporting lower carbon emissions and improved energy security.

These proposals are subject to the successful passage of secondary legislation, with further details expected in the government's full consultation response and forthcoming guidance.

For landlords, investors and occupiers of larger commercial properties, now is an ideal time to review existing EPC ratings and develop a strategy for meeting the proposed 2031 requirements.

To read the government's interim response to the consultations in full, please visit: https://www.gov.uk/government/consultations/non-domestic-private-rented-sector-minimum-energy-efficiency-standards-epc-b-implementation/outcome/minimum-energy-efficiency-standards-mees-in-the-non-domestic-private-rented-sector-interim-response.