MEES regulations have become a key consideration for tenants navigating the commercial property market in the UK. With sustainability rising up the corporate agenda and regulation catching up fast, businesses must understand how energy standards could impact their leases, operating costs, and even future growth plans.
Whether you’re about to sign a new lease or assessing your current space, getting to grips with MEES is essential. In this article, we’ll discuss what MEES means, the key deadlines, how these impact commercial tenants, and other key considerations.
If you would like to discuss how these regulations could affect your lease or need broader advice on property matters, please get in touch with our commercial property team at property@ignition.law.
What are the MEES regulations?
The Minimum Energy Efficiency Standards (MEES) regulations were introduced to improve the energy performance of rented properties across England and Wales. These energy efficiency regulations make it unlawful for landlords to let commercial properties with an Energy Performance Certificate (EPC) rating below E, unless a valid exemption applies.
The initial phase came into force in 2023, marking a significant milestone for property compliance. Over the next few years, targets are tightening, with ambitious new thresholds on the horizon that will impact both landlords and tenants.
What are the key MEES deadlines?
Here’s what tenants should be aware of:
- From 1 April 2025: All rented commercial properties must have a valid EPC.
- From 1 April 2027: Properties must achieve a minimum EPC rating of C or register an exemption.
- From 1 April 2030: The standard increases again, properties must reach a B rating to remain legally lettable.
The minimum energy efficiency standards 2023 signalled the government’s long-term push for greener buildings, establishing clear deadlines and accelerating a shift towards more sustainable property standards.
How do MEES regulations 2023 affect commercial tenants?
While the primary responsibility for MEES compliance falls on landlords, tenants cannot afford to ignore the implications. From lease clauses and fit-out plans to energy costs and long-term liability, MEES 2023 can impact several key areas of a tenancy.
If you are about to sign a lease or renew an existing one, there are various key considerations you should be making, which we will explore below:
What should tenants consider before signing a lease?
EPC ratings and due diligence
Always check the EPC rating before signing a property lease. If improvement works are required, ensure that you understand the likely scope, disruption, and whether the landlord will need access. Make sure that you confirm who will bear the cost, clarity here can save considerable time and expense later.
Heads of Terms and energy efficiency
A low EPC rating might lower the rent, but it could also signal upcoming works. Ensure that you use your Heads of Terms to agree on how and when upgrades will happen, and who is responsible for paying for them.
Fit-out restrictions
Modern leases often restrict alterations that negatively impact EPC ratings. If you are planning a fit-out, make sure your designs align with energy performance standards and don’t breach your lease terms.
Liability for MEES compliance
Ensure that the Minimum Level of Energy Efficiency requirements for landlords don’t unfairly shift to you as the tenant. It is advisable to review service charge provisions carefully and push to exclude responsibility for capital upgrades unless expressly agreed.
Underletting risks
If you plan to underlet, remember you could inherit landlord responsibilities for MEES. Ensure you are prepared to meet those obligations before proceeding.
Dilapidations and energy standards
Post-lease upgrade requirements could limit what a landlord can claim through dilapidations. Address this upfront in your lease to avoid commercial property disputes when the term ends.
What else should tenants know about MEES compliance?
What is an EPC rating, and why does it matter?
An EPC assesses the energy efficiency of a building on a scale from A (best) to G (worst). The rating is based on insulation, windows, heating systems and more. It is not just a compliance issue; it can significantly affect running costs.
Can landlords pass MEES compliance costs to tenants?
While landlords bear the core responsibility, many attempt to recover upgrade costs via lease terms or service charges. Your lease should be carefully reviewed to avoid unexpected liabilities.
What happens if a property doesn’t meet the minimum standards?
If a building doesn’t meet the legal EPC threshold – currently E, rising to C in 2027 and B in 2030, the landlord can’t lawfully let it unless an exemption is in place. This could delay your occupancy or impact your ability to operate from the premises.
Why should tenants act now?
These regulations represent just the beginning of a broader shift towards sustainable commercial property use. Staying ahead of minimum energy efficiencystandards helps protect your business from operational disruption, financial risk, and missed opportunities.
Being proactive doesn’t just keep you compliant, it puts your business in a stronger position to negotiate better terms, save on long-term energy costs, and align with modern ESG values.
Contact our commercial property solicitors
Our commercial property team at Ignition Law understands what growing businesses need. Whether you are reviewing heads of terms, negotiating a renewal, or exploring underletting, we’ll help you navigate the legal and practical challenges of MEES compliance. Email us today at property@ignition.law to find out how we can support your commercial lease strategy.
