Clarity on energy efficiency rules for commercial property needed
Propertymark has written to Martin McCluskey MP, Minister for Energy Consumers at the Department for Energy Security and Net Zero, urging the UK Government to provide urgent clarity on the future of Minimum Energy Efficiency Standards (MEES) for non-domestic property.
The letter follows the publication of the UK Government’s Warm Homes Plan, which confirmed that privately rented homes will be required to meet an EPC rating of C by 2030. While Propertymark acknowledges the ambition to improve energy efficiency and tackle fuel poverty, it has raised significant concerns about how the proposals will impact landlords and agents across both the residential (domestic) and commercial (non-domestic) sectors.
In the private rented sector, Propertymark warns that landlords are being asked to deliver, in many cases, substantial and costly upgrades within a relatively short timeframe, often involving complex or hard-to-treat properties. These requirements are being introduced without clear, long-term funding commitments, realistic delivery timescales, or sufficient flexibility. Propertymark has consistently argued that a phased and pragmatic approach is needed to allow landlords to maintain the Decent Homes Standard, manage costs effectively, and contribute meaningfully to the UK Government’s net zero ambitions without reducing rental supply.
While additional clarity on domestic MEES is welcome, Propertymark is particularly concerned by the continued lack of equivalent guidance for non-domestic property. Many commercial agents are operating in a policy vacuum, despite longstanding expectations that commercial buildings could be required to meet an EPC rating of B by 2030.
Commercial agents are increasingly being asked to advise landlords and tenants on long-term investment decisions, lease structures, and asset management strategies without any certainty on future energy efficiency requirements. Propertymark warns that this policy could cause uncertainty and discourage investment across the commercial sector, particularly on high streets and in town centres, as landlords may delay or withdraw funding for upgrades, refurbishment, and regeneration projects.
This uncertainty is further compounded by wider policy developments, including proposals within the English Devolution and Community Empowerment Bill, such as restrictions on upward-only rent reviews and changes to end-of-lease arrangements, which may interact with MEES obligations in complex and unintended ways.
Propertymark has warned that the absence of detail on interim targets, exemptions, enforcement mechanisms, and financial support makes it impossible for commercial landlords and tenants to plan responsibly or invest with confidence. Agents are already reporting growing concern from clients facing significant retrofit costs, uncertainty over who is responsible for improvements, and the risk of properties becoming unlettable if standards are introduced without sufficient lead-in time or support.
Propertymark has requested meetings with Ministers and officials to discuss the technical details of the Warm Homes Plan and to ensure the practical realities faced by agents managing both domestic and non-domestic property are fully understood. The organisation is calling on the UK Government to urgently set out a clear and coherent roadmap for non-domestic MEES, alongside a more flexible and deliverable approach for the private rented sector.
Without clear and timely guidance, Propertymark warns that uncertainty risks landlords withdrawing properties from both the residential and commercial markets. This would reduce supply, increase costs for tenants and businesses, and ultimately undermine the UK Government’s objectives on affordability, energy efficiency, and economic growth.
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