Minimum energy efficiency standards (MEES) for let property
In England and Wales a landlord cannot let a non-domestic building or a home with an EPC rating below E unless a valid exemption is registered. The government confirmed in June 2026 that larger non-domestic buildings (over 1,000 square metres) must reach EPC B by 2031, dropping the proposed EPC C step in 2027, and has decided that private rented homes must reach EPC C by 1 October 2030 with a £10,000 cost cap. The current E standard stays in force until new regulations are made.
At a glance
- Who must comply
- Landlords of privately rented non-domestic buildings and homes in England and Wales, and the agents who market them; tenants who sub-let.
- Thresholds
- EPC E minimum now. Non-domestic buildings over 1,000 m²: EPC B by 2031. Domestic: EPC C (new metrics) by 1 October 2030, with a £10,000 cost cap.
- Next key date
- Full government response on non-domestic enforcement expected later in 2026; domestic and non-domestic regulations still to be laid.
- Regulator
- Local authority Trading Standards enforce; DESNZ and MHCLG set policy; the PRS Exemptions Register is run by the government.
- Maximum penalty
- Non-domestic: up to 20% of rateable value, maximum £150,000 per breach, plus publication. Domestic: up to £5,000 per property now, proposed to rise to £30,000.
- Where to do it
- EPC register (find or lodge an EPC); PRS Exemptions Register to register an exemption.
This probably applies to you if
- You let offices, shops, warehouses, factories or other non-domestic buildings in England or Wales
- You let houses or flats on assured, regulated or agricultural tenancies in England or Wales
- You grant a new lease, renew or extend a lease, or continue an existing letting of a building rated F or G
- You manage property for landlords, or you are a tenant sub-letting part of a building
- You own commercial property over 1,000 m² that you expect to let in 2031 and beyond
The current rules
The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 make it unlawful to let a "sub-standard" property, one with an EPC rating of F or G:
| Property type | Since | Standard |
|---|---|---|
| Non-domestic: new lettings and renewals | 1 April 2018 | EPC E |
| Non-domestic: all continuing lettings | 1 April 2023 | EPC E |
| Domestic: new tenancies | 1 April 2018 | EPC E |
| Domestic: all existing tenancies | 1 April 2020 | EPC E (cost cap £3,500 including VAT) |
The regulations apply where the property legally requires an EPC. Listed buildings, short lets under six months, long leases over 99 years and some other cases fall outside. A landlord who cannot meet the standard must carry out the improvements that are cost-effective (non-domestic: a seven-year payback test; domestic: up to the cost cap) and register any remaining exemption.
Exemptions and the PRS Exemptions Register
Exemptions last five years (six months for a new landlord) and must be registered before relying on them:
- seven-year payback (non-domestic): no improvement pays for itself within seven years, shown by three quotes;
- cost cap (domestic): the landlord has spent £3,500 including VAT on improvements without reaching E;
- all improvements made: every relevant improvement is installed and the rating is still below E;
- devaluation: a surveyor confirms improvements would reduce the property's value by more than 5%;
- third-party consent: a tenant, superior landlord, lender or planning authority refuses consent;
- new landlord: six months' grace after becoming a landlord unexpectedly.
Registration is free on the PRS Exemptions Register and is public.
What is changing for non-domestic buildings
On 18 June 2026 the government published its interim response to the 2021 consultation on raising the non-domestic standard:
- privately rented non-domestic buildings over 1,000 square metres must reach EPC B by 2031, where cost-effective under the seven-year payback test (one year later than the 2030 date originally proposed);
- the proposed EPC C milestone in 2027 is dropped;
- buildings under 1,000 square metres stay at EPC E with no date yet for a higher standard;
- the existing exemptions and payback test remain.
Still open, with a full response expected later in 2026: stronger enforcement and penalties, a six-month exemption for shell-and-core lettings, statutory tenant duties, and reform of the three-quotes rule. None of this is in regulations yet, so EPC E remains the legal standard until amending legislation passes.
What is changing for rented homes
The government's decision on the domestic sector, published in January 2026, sets a single deadline of 1 October 2030 for all private rented homes in England and Wales to reach the new standard. The standard uses the reformed EPC's metrics: a home must meet the Fabric Performance metric and either the Heating System Efficiency or Smart Readiness metric. Homes rated C or above on an EPC issued before 1 October 2029 count as compliant. The cost cap is £10,000 (reduced to 10% of value for homes worth under £100,000), with a ten-year exemption once a landlord has spent the cap, improvements funded from October 2025 counting towards it, and a proposed maximum penalty of £30,000 per property. Short-term lets are excluded. Regulations are still to be laid, so until then the EPC E rule and £3,500 cap apply.
Tip: with 2030 and 2031 deadlines now set, lease renewals, refurbishment programmes and acquisitions should be planned against the future standard, not the current one. Ask for a reformed EPC and a costed improvement plan at the next lease event.
Penalties
| Breach | Non-domestic penalty | Domestic penalty (current) |
|---|---|---|
| Letting a sub-standard property for less than 3 months | Up to 10% of rateable value, minimum £5,000, maximum £50,000 | Up to £2,000 |
| Letting a sub-standard property for 3 months or more | Up to 20% of rateable value, minimum £10,000, maximum £150,000 | Up to £4,000 |
| Registering false or misleading information | Up to £5,000 | Up to £1,000 |
| Failing to comply with a compliance notice | Up to £5,000 | Up to £2,000 |
Local authorities can also publish details of the breach. The domestic maximum is capped at £5,000 per property in total and is proposed to rise to £30,000 under the 2030 standard.
Scotland and Northern Ireland
Scotland has no MEES equivalent for lettings. Owners of non-domestic buildings over 1,000 square metres must produce an action plan under section 63 of the Climate Change (Scotland) Act 2009 when selling or leasing, and the Scottish Government has consulted on minimum standards for private rented homes but has not legislated. Northern Ireland has no minimum energy efficiency standard for let property, although EPCs are required on sale and let.
How it differs across the UK
- E England
The 2015 Regulations apply: EPC E floor for all lettings, with EPC B for non-domestic buildings over 1,000 m² by 2031 and EPC C for rented homes by 1 October 2030 decided but not yet legislated. Enforced by local authorities.
- W Wales
The 2015 Regulations apply in Wales on the same terms as England, including the 2030 and 2031 decisions, which cover England and Wales.
- S Scotland
No MEES for lettings. Section 63 of the Climate Change (Scotland) Act 2009 requires action plans for non-domestic buildings over 1,000 m² on sale or lease; domestic PRS standards have been consulted on but not made.
- NI Northern Ireland
No minimum energy efficiency standard for let property; EPCs are required on sale and let.
Key dates
-
Full government response on non-domestic MEES enforcement, shell-and-core exemption and tenant duties expected
-
Private rented homes in England and Wales must meet the EPC C standard (fabric plus heating or smart readiness metrics), £10,000 cost cap
-
Privately rented non-domestic buildings over 1,000 m² must reach EPC B where cost-effective
Dates marked “Proposed” are announced or consulted on but not yet law. See the full deadlines calendar.
Penalties and enforcement
| Breach | Penalty | Applies in | |
|---|---|---|---|
| Letting a sub-standard (F or G) non-domestic property for 3 months or more | Up to 20% of rateable value, minimum £10,000, maximum £150,000, plus publication | EW | Source |
| Letting a sub-standard non-domestic property for less than 3 months | Up to 10% of rateable value, minimum £5,000, maximum £50,000 | EW | Source |
| Letting a sub-standard domestic property | Up to £5,000 per property in total under current rules; proposed maximum £30,000 under the 2030 standard | EW | Source |
Compliance checklist
Where to do it: official services
-
PRS Exemptions Register
Register or apply
Register a MEES exemption or search registered exemptions. DESNZ EW
-
Find an energy certificate
Check a register
Look up the EPC rating of any building in England and Wales. MHCLG EW
-
Non-domestic private rented property: minimum energy efficiency standard guidance
Guidance
The official landlord guidance on the non-domestic standard, exemptions and penalties. DESNZ via GOV.UK EW
-
Domestic private rented property: minimum energy efficiency standard guidance
Guidance
The official guidance for landlords of rented homes. DESNZ via GOV.UK EW
The law behind this
Questions people ask
What EPC rating do I need to let a commercial property?
At least E, unless a valid exemption is registered. Since 1 April 2023 this applies to continuing leases as well as new ones. The government has decided that buildings over 1,000 square metres must reach EPC B by 2031 where cost-effective, but that is not yet in regulations; the proposed EPC C step in 2027 has been dropped.
Do rented homes need to be EPC C by 2030?
That is the government's decision, published in January 2026: all private rented homes in England and Wales must meet the new standard by 1 October 2030, with a £10,000 cost cap and a maximum penalty of £30,000. The standard uses the reformed EPC's fabric, heating and smart readiness metrics. Until the regulations are made, the legal minimum remains EPC E.
What are the MEES penalties for commercial landlords?
Up to 10% of the property's rateable value (minimum £5,000, maximum £50,000) for a breach of less than three months, and up to 20% (minimum £10,000, maximum £150,000) for three months or more, plus up to £5,000 for false information or ignoring a compliance notice. Local authorities can also publish the breach.
How long does a MEES exemption last?
Five years from registration, except the new landlord exemption, which lasts six months. You must register on the PRS Exemptions Register before relying on an exemption, and you must apply again, with fresh evidence, when it expires. The register is public, so prospective tenants and buyers can see it.
Does MEES apply in Scotland?
No. Scotland's regime is different: owners of non-domestic buildings over 1,000 square metres must produce an action plan under section 63 of the Climate Change (Scotland) Act when they sell or lease, and the Scottish Government has consulted on minimum standards for rented homes without yet legislating.
Terms used in this guide
- Sub-standard property
- A property with an EPC rating of F or G that cannot lawfully be let without a registered exemption.
- Seven-year payback test
- The non-domestic test under which an improvement is only required if its expected energy savings over seven years equal or exceed its cost.
- PRS Exemptions Register
- The public register on which landlords record MEES exemptions, valid for five years.
- Fabric Performance metric
- One of the reformed EPC metrics measuring how well a home's walls, roof, floors and windows retain heat; the core of the 2030 domestic standard.
Sources
- Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015
- Non-domestic private rented property: minimum energy efficiency standard, landlord guidance, GOV.UK
- Non-domestic MEES: UK government confirms EPC B target from 2031, Jones Day (September 2026)
- Domestic private rented properties required to meet EPC C by October 2030, Elmhurst Energy (January 2026)
- Government publishes update on commercial minimum energy efficiency standards, RICS
- Climate Change (Scotland) Act 2009, section 63
Reviewed 14 October 2026. If you spot something out of date, email info@thamesenvironment.com.