Following the Government’s 2021 consultation on increasing minimum EPC standards for non-domestic rented properties, an interim update has now been published.
The current rules
Currently, subject to certain exemptions, landlords cannot typically let a property without a valid EPC with a rating of ‘E’ or higher. Unless they benefit from an exemption, the landlord is exposed to the risk of having to pay a penalty.
The 2021 consultation
In 2021 the Government released a consultation on increasing the minimum EPC rating to a ‘B’ or higher.
From 2027 properties that were to be let would need to have a ‘C’ rating, and from 2030 properties would need a ‘B’ rating.
The 2026 update
The Government has published its interim response on proposed changes to MEES.
The new proposals are:
- All private rented buildings over 1000 square metres will need an EPC rating of ‘B’ or higher by 2031 where cost affective. Buildings below 1000 square metres will remain subject to the current minimum EPC rating of ‘E’.
- The proposed requirement to have a ‘C’ rating by 2027 is no longer being pursued.
- Many existing mechanisms that ensure any required changes are cost effective will remain in place.
The Government’s revised approach is intended to focus compliance costs on larger buildings while giving SMEs and landlords of smaller premises additional flexibility.
Implementation of any proposals is subject to Parliament providing the necessary consents and powers.
With these changes on the horizon, property owners should start preparing now to avoid delays and ensure compliance. At Ellisons, our commercial property team can advise on how the new prospective regulations may affect your property or transaction. If you would like further guidance, please get in touch.