Minimum lawful EPC rating of “B” from 2031 for larger commercial property

On 18 June 2026, the Government made its long-awaited announcement on the minimum lawful energy performance certificate (EPC) rating for commercial property under the Minimum Energy Efficiency Standards (MEES).

The Government has published its interim response to the Conservative Government’s 2019 and 2021 consultations on MEES relating to the non‑domestic private rented sector in England and Wales. See here for CMS’s commentary on the 2021 consultation. 

Key points:

The key headlines of the latest response are:

• 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.
• the intention is for buildings below 1,000 square metres to continue to be subject to the current minimum standard of EPC E.
• the previously proposed interim EPC C milestone for 2027 will not be taken forward, giving landlords and tenants more time to improve the efficiency of their buildings in a way that suits their buildings and lease agreements.
• existing flexibility mechanisms, including the 7-year payback test and exemptions, will remain in place ensuring that only improvements that are practical, affordable and cost-effective will be required.

The change to raise the minimum lawful MEES standard to EPC B for larger buildings will only take effect following the successful passage of secondary legislation through Parliament. 

The position doesn’t change for non‑domestic private rented buildings below 1,000 square metres (those buildings to remain at a minimum lawful standard of EPC E), the Government giving additional flexibility to landlords of smaller properties to upgrade their buildings over time, with no set deadline for going beyond this level. 

Next steps:

Further detail on these proposals and implementation of the threshold will be set out in the forthcoming Government response to the consultations. The Government aims to introduce legislation and updated guidance at the earliest opportunity, working with stakeholders.

More detail can be found at Minimum Energy Efficiency Standards (MEES) in the non‑domestic Private Rented Sector: interim response - GOV.UK