MEES Band C (proposed) 2028: What Every Landlord Needs to Know

Since 1 April 2018, it has been unlawful to grant a new lease on a commercial property with an Energy Performance Certificate (EPC) rating below Band E. From 1 April 2023, this requirement was extended to cover all existing leases, meaning that any commercial property let with an EPC rating of F or G is now in breach of the regulations, regardless of when the lease was granted.

What is MEES?

The Minimum Energy Efficiency Standards (MEES) are a set of regulations introduced under the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015, commonly referred to by their statutory instrument number: SI 2015/962. These regulations set minimum energy performance requirements for privately rented commercial and domestic properties in England and Wales. The EPC data used to assess compliance is drawn from the official MHCLG (Ministry of Housing, Communities and Local Government) Energy Performance of Buildings register.

What is the proposed Band C target?

The UK government has signalled its intention to raise the minimum EPC requirement for commercial properties from Band E to Band C by 1 April 2028. This is a proposed regulatory target, it is not yet confirmed law as of March 2026. The final statutory instrument has not been laid before Parliament, and the proposal remains subject to legislative confirmation.

However, the direction of travel is consistent with the government's broader net zero strategy and the Clean Growth Strategy. If enacted, the proposed Band C requirement would represent a significant step change from the current Band E minimum. Landlords should plan on the basis that some form of tightening is likely, even if the exact date or band level is adjusted during the legislative process.

Which properties are affected?

Under the current regulations, only properties rated F or G are non-compliant. Properties rated D or above currently meet the Band E minimum and can be legally let. However, under the proposed 2028 Band C target, properties rated D, E, F, and G would all fall below the minimum standard.

This is a critical distinction. A property rated D is perfectly compliant today, it meets the current Band E requirement. But if the proposed Band C target is enacted, that same property would become non-compliant and subject to penalties unless it is upgraded. Centre for Cities analysis (2024) records around 70% of commercial floor space in England and Wales is currently rated C or below, with the UK Government estimating up to 1,000,000 buildings entering MEES scope by 2030, concentrated in older office stock, retail units, and industrial premises.

What are the penalties?

Penalties for non-compliance with MEES are set out in SI 2015/962, Regulation 39. They are calculated based on the rateable value of the property and the duration of the breach, not as a flat fee. This is an important point that is often misunderstood. The penalty is not a fixed amount; it scales with the value and duration of the non-compliance.

For breaches lasting less than three months, the penalty is 10% of the rateable value, subject to a minimum of £5,000 and a maximum of £50,000. For breaches lasting three months or more, the penalty increases to 20% of the rateable value, with a minimum of £10,000 and a maximum of £150,000. Penalties apply per property, per breach period. Compliance notices are published on a public register, creating reputational risk alongside financial exposure.

Local authority trading standards officers are responsible for enforcement. The combination of financial penalties and public registration makes non-compliance a significant business risk for commercial landlords.

What should landlords do now?

Even though the Band C target is proposed rather than confirmed, there are strong reasons to act now rather than waiting for final legislation. Retrofit works take time to plan, procure, and complete, and contractor lead times are growing as demand increases across the sector.

1. Get an up-to-date EPC for each property. Many commercial EPCs are based on assessments from 5-10 years ago. Building conditions change, and an updated EPC gives you an accurate baseline for compliance planning.
2. Understand the gap between your current band and Band C. A property rated D needs relatively modest improvements to reach C, while a property rated E or F may require substantial retrofit investment.
3. Model retrofit costs against penalty exposure. In many cases, the cost of upgrading a property is significantly less than the cumulative penalty exposure over several years of non-compliance. A clear financial comparison helps justify the investment to boards, lenders, and stakeholders.
4. Prioritise properties with the largest gaps or highest rateable values. Properties with high rateable values face the largest penalties, so they should be addressed first. Similarly, properties rated F or G face the longest journey to Band C and need the earliest start.
5. Start planning retrofit works now. Contractor availability for insulation, heating upgrades, and lighting improvements is becoming constrained as the proposed deadline approaches. Early engagement secures better pricing and scheduling.

How CrowAgent Core helps

CrowAgent Core analyses any UK commercial property against the proposed Band C target, calculates penalty exposure under SI 2015/962, and models three retrofit scenarios with NPV analysis using HM Treasury Green Book methodology at 3.5%. The workflow runs from postcode to downloadable report, giving your team a starting point they can review and act on. No surveyor needed for the initial analysis.