The UK government has announced a major policy shift for Minimum Energy Efficiency Standards (MEES) in the non-domestic private rented sector. The deadline requiring commercial properties to achieve an EPC rating of C by 2027 has been completely scraped.
Instead, the government is shifting its focus to 2031, targeting a minimum EPC rating of B, but strictly for privately rented non-domestic properties above 1,000 square metres. Smaller commercial units (under 1,000 sq m) will remain subject to the current minimum energy efficiency ratings (EPC E).
Why the Sudden U-Turn?
The decision to drop the 2027 deadline comes as achieving a minimum rating of C by next year was proving too challenging:
- Financial Pressures: A stagnant economy has left many small businesses and landlords struggling to justify or afford heavy capital expenditure.
- Industry Skills Shortage: The sector simply lacks the volume of certified energy assessors and green-tech contractors to survey and upgrade millions of commercial buildings before the end of the year.
- Right of Access: Landlords face major legal hurdles entering a building to make physical upgrades while a tenant is in situ. Many are forced to wait out a lease, execute break clauses, or absorb painful rental void periods while works are carried out.
How Medway & Law Can Help
While the rule change gives a bit of a break for smaller buildings, larger offices, retail parks, and warehouses will still face intense scrutiny as we move toward 2031 and with a lot of businesses still having to meet their own personal sustainability goals its not be overlooked.
At Medway & Law, we have seen first-hand how compliance issues can complicate transactions. Some acquisitions and disposals are taking longer to finalise while buyers and tenants carry out sustainability checks.
However, using our extensive network and market expertise across London we have been able navigate these barriers to keep deals moving smoothly.
If you have do have any void spaces, looking to sell a commercial property or looking for a new sustainable premises please get in touch with us for a free consultation.
Get in touch with Law at Medway & Law
📞 Call us: 0207 043 0111
✉️ Email us: Info@medwayandlaw.co.uk
📍 Office: 20 Hanover Street, London, W1S 1YR
