MEES 2 : Keep Calm and Carry Out Improvements 

Commercial MEES: What We Know, What’s Coming, and What It Means for Your Portfolio

The Government had been expected to confirm changes to Minimum Energy Efficiency Standards (MEES) for commercial real estate this year. All the evidence gathered to date points toward commercial MEES rising to a minimum EPC rating of B by 2030, which would make sub-B commercial buildings unlawful to lease. That announcement, however, has still not landed. As soon as it does, we will update you.

The proposal to raise standards was first outlined in a 2020 Government white paper, recommending EPC Grade B as the new minimum for non-domestic buildings. While delays continue, the message from central Government remains clear: the uplift is still firmly on the agenda.

At the PEPA Conference in December 2025, Jessica Skilbeck, Director of Net Zero Buildings & Industry at DESNZ, confirmed that the commercial MEES update is delayed while Government focuses on urgent priorities in the domestic private rental market. Once domestic measures – including their own MEES revisions – are finalised, the commercial MEES (Phase 2) announcement is expected to follow.

Skilbeck’s update covered a wide range of national net-zero and energy-efficiency priorities, including:

• Balancing immediate support with long-term decarbonisation strategy
• 2.7 million households currently in fuel poverty
• ECO4 levy ending, with public funding replacing bill-funded support
• Nearly £50bn committed to the Warm Homes Plan – the UK’s largest ever investment in energy efficiency
• Plans for minimum EPC C in rented homes remain on track
• Future Homes Standard to cut carbon from new homes by 75%
• Major reform of EPCs, adding new fabric, heating, smart-readiness and cost metrics
• Strong push for tighter collaboration between government and industry

Why does this matter for the commercial rental market?

Because the scale of domestic reform explains part of the delay – but not the direction of travel. Government remains committed to decarbonisation across the built environment, and commercial property is very much part of that trajectory.

In fact, many landlords and asset managers are not waiting for policy updates. They are already upgrading buildings, switching to electric and low-carbon systems, and aligning portfolios with the UK’s legally binding Net Zero 2050 target. These moves not only future-proof assets but also enhance rental performance, tenant appeal and long-term value.

And the market evidence is now undeniable. One of the most comprehensive studies on EPC performance and rental growth concludes:

“EPC ratings of A and B command statistically significant rental premiums of 10%–15%. In regional centres, tenants are willing to pay around 12% more for EPC B space.”

For commercial landlords, developers and asset managers, the message is clear: waiting for legislation means missing the market advantage. Proactive investment in energy performance is already delivering higher yields and stronger tenant demand.

If you’re ready to put a strategy in place for your commercial portfolio – or support your clients in doing so – Vital can help you plan, prioritise and deliver improvements that protect value and unlock future rental growth.

Call Vital today on 0345 111 7700 to discuss your next steps in a fast-changing regulatory landscape.