MEES Compliance for Commercial Office Landlords and Tenants

What MEES requires today

From 1 April 2023, MEES prohibits landlords from letting commercial property in England and Wales with an EPC rating below E. This applies to new tenancies, lease renewals, and continuation of existing tenancies.

From 1 April 2027 (proposed), the minimum rises to EPC C. From 1 April 2030, the minimum may rise to EPC B — consultation underway.

Who MEES applies to

Landlords, primarily — they're responsible for the EPC rating. Tenants are affected indirectly:

• Landlords cannot let sub-standard space — affects new tenant take-up
• Tenant-driven fit-out may upgrade the EPC — LED lighting, insulation, HVAC improvements
• Dilapidations can be leveraged against EPC — tenant works that demonstrably improved EPC can offset reinstatement
• Penalties for breach — up to £150,000 per property for landlord breach

Exemptions

Several exemptions exist but all time-limited:

• 7-year payback — remediation measures with payback over 7 years exempt (with evidence)
• Listed buildings — exempt where works would unacceptably alter character
• Third-party consent refused — where works need consent that's denied
• Devaluation exemption — works would reduce property value by 5%+ (evidence required)
• Temporary 6-month exemption — for new landlords

All exemptions must be registered on the PRS Register within 5 years of becoming eligible.

Common remediation measures

1. LED lighting upgrade

   Highest-impact intervention. Typical EPC lift: 1–2 bands. Cost £12–£22/sqft for commercial LED.

2. HVAC controls and commissioning

   BMS tuning, variable-speed drives, sensor integration. Typical lift: 0.5–1 band.

3. Lighting controls

   DALI and presence detection. Typical lift: 0.5–1 band.

4. Renewable energy

   Solar PV on suitable roofs — often landlord-capex. Lift varies.

5. Insulation

   Roof and walls where practical. Major capex, often listed-building constrained.

6. Metering and monitoring

   Enables occupier behaviour change. Modest direct EPC impact.

Programme implications

EPC remediation typically plans around lease events:

• Vacant void — easiest time. Landlord delivers EPC remediation as part of re-letting programme.
• End of lease — coordinate with dilapidations. Tenant's reinstatement can be leveraged to improve EPC.
• Occupied — out-of-hours works. Coordinate with building maintenance windows.

How fit-out can improve EPC

Tenant CAT B fit-out can materially improve the building EPC. Key moves:

• LED upgrade with DALI controls during fit-out
• HVAC recommissioning
• Insulation upgrade if ceiling void accessible
• Smart metering installation

Where tenant is contributing to EPC uplift, negotiate dilapidations reduction at lease end. Where landlord is contributing to tenant fit-out, EPC uplift is usually factored into the contribution.

What we do

Fit-out delivery with EPC-lift-by-design — LED, DALI, BMS, commissioning all included in standard CAT B scope. See Office Fit-Out, Lighting & Electrical, Office Renovation.

FAQs