The Minimum Energy Efficiency Standards (MEES) set the lowest Energy Performance Certificate rating a commercial property can have and still be let in England and Wales.
The current rule
Since 1 April 2023, landlords must not continue to let non-domestic property with an EPC rating below E unless a valid exemption is registered. New lettings have been subject to the same minimum since 2018.
Proposed tightening
The government has consulted on raising the minimum further over the coming years. Investors should treat a low EPC rating as a likely future cost.
What it means for investors
- Check the EPC rating of any building before investing.
- Budget for upgrades such as lighting, heating, insulation and solar panels.
- Better-rated buildings tend to attract stronger demand from occupiers with sustainability targets.
Scotland and Northern Ireland have their own energy performance rules.
This guide is general information, not financial, tax or legal advice. If you are unsure whether an investment is right for you, speak to a regulated financial adviser.