The Government has, at last, provided an interim response to the commercial property MEES consultations undertaken in 2019 and 2021. It has reported that its intentions are as follows:

• a minimum EPC B rating will be required from 2031, where cost-effective, when letting private rented commercial buildings over 1,000 square metres in England and Wales;

• commercial buildings below 1,000 square metres will continue to be subject to the current minimum E rating;

• the previously proposed interim rating of C in 2027 will be abandoned; and

• that there will be no change to existing exemptions

Secondary legislation will be required to implement the requirement for a minimum B rating for larger buildings.

The Government has stated that ‘further detail on these proposals and implementation of the threshold will be set out in the forthcoming government response to the public consultations. The government aims to introduce legislation and updated guidance at the earliest opportunity, working with stakeholders to get the detail right.’

Whilst there are cost implications, the Government’s response on the future direction of MEES for commercial property will provide a welcome degree of certainty for the market for stakeholders planning improvements to the energy efficiency of properties within their portfolio. 

Another notable outcome of the Government’s response is the decision not to extend the minimum EPC B rating to smaller commercial properties.  This provides greater certainty for landlords of smaller assets and removes the prospect of those properties being brought within scope and potentially requiring substantial capital expenditure in order to remain compliant and marketable for commercial letting purposes.