MEES and EPC B by 2031: What the June 2026 Update Means for Commercial Landlords

After years of consultation and uncertainty, the government published its interim response on non-domestic Minimum Energy Efficiency Standards on 18 June 2026. For commercial landlords it finally provides a direction of travel: a higher energy performance standard is coming for larger privately rented buildings, but later and more narrowly than earlier proposals suggested. This article summarises what has been confirmed and how to plan refurbishment works around it.

What Has Been Confirmed

• From 2031, privately rented non-domestic buildings over 1,000 square metres are expected to need an EPC rating of B, where cost-effective.

• Buildings under 1,000 square metres are expected to remain subject to the current minimum of EPC E.

• The earlier proposed interim milestone of EPC C by 2027 will not go ahead.

• Existing exemptions, including the seven-year payback test, are expected to continue.

What Is Still to Come

This was an interim response. Secondary legislation and a fuller consultation response are still needed to set out the detail, including how the cost-effectiveness test will work in practice and how enforcement will operate. Landlords should treat the announcement as a clear direction, not as final law, and keep an eye on further publications.

Why It Matters Now

Five years may sound like a long time, but most commercial buildings are upgraded around lease events, void periods or refinancing. Works that improve an EPC rating, such as fabric upgrades, glazing, heating and cooling, controls and lighting, are far cheaper and less disruptive when done as part of planned refurbishment than as a reactive fix. Buildings that are hard to let or finance tend to be discounted, so efficiency is increasingly a matter of asset value as well as compliance.

A Practical Starting Point for Landlords

• Review the EPC for each property, including its rating, recommendations and expiry date.

• Identify which buildings exceed 1,000 square metres and are let, or likely to be let, privately.

• Commission an energy assessor to model the upgrades that would move each building towards a B rating, and what they would cost.

• Align works with lease breaks, voids and planned refurbishment rather than treating them as a separate project.

Delivering Upgrade Works

Energy upgrades touch structure, services and finishes at once, which is why they are best managed by a main contractor that can coordinate the trades and protect the programme. Berati Construction delivers commercial refurbishment and fit-out across London and the South East, and can work with your energy assessor and design team to turn recommendations into a costed, phased scope.

Read our landlord's guide to refurbishing commercial property to attract tenants and our overview of commercial fit-out and refurbishment. To discuss a specific building, explore our services or get in touch.