MEES Reforms: Challenges facing the commercial sector
Published: 14/05/2025
The commercial property sector in England is facing significant regulatory and practical challenges as it prepares for stricter Minimum Energy Efficiency Standards (MEES). Proposed government targets, first consulted on in 2021, would require commercial properties to achieve a minimum Energy Performance Certificate (EPC) rating of 'C' by 2027 and 'B' by 2030. However, new research highlights the scale of the task ahead and calls into question whether these targets are currently realistic.
According to a February 2025 study by the British Property Federation (BPF), more than 80% of commercial properties in seven major English cities fall below an EPC rating of B. The analysis, which used the Ministry of Housing, Communities & Local Government’s EPC database (October 2024), looked at London, Birmingham, Bristol, Leeds, Liverpool, Manchester, and Newcastle.
Only 2% of properties across these cities are rated EPC A, and just 15% are rated B. Manchester performs slightly better, with 20% of buildings meeting the standard, followed closely by London (19%). Bristol and Birmingham lag, with only 15% of commercial buildings rated B or better.
The figures showing the amount below EPC B reveal the scale of the challenge ahead:
London: 110 million+ sqm
Birmingham: 18.9 million sqm
Manchester: 10.8 million sqm
Leeds: 12.5 million sqm
Liverpool: 7.3 million sqm
Bristol: 7.5 million sqm
Newcastle: 4.9 million sqm
This equates to over five million square metres of commercial floorspace per year, requiring energy performance upgrades between now and 2030. Importantly, many of these buildings are already occupied, meaning retrofit works must be carefully managed to avoid disrupting tenants and business operations, particularly where structural or service-related alterations are required.
The BPF has called on the government to issue a full and timely response to the original MEES consultation. Harris Associates supports this call, urging government departments to work with industry stakeholders to provide clarity on timelines and expectations. Without clear guidance, landlords and property managers face uncertainty in investment decisions and risk being unable to deliver compliance within the current proposed timeframes.
A Political and Global Context
The political climate adds further complexity. In the UK, the Labour government, currently in office, has adopted a firmer stance on environmental regulation, including progress towards Net Zero. This contrasts with more sceptical approaches, both domestically and internationally. The Conservative Party and Reform UK express scepticism about achieving Net Zero by 2050, suggesting it could harm living standards and lead to financial challenges.
In the US, the Republican Party under Donald Trump has signalled a retreat from climate targets and environmental regulations, while Democrats continue to support green investment and renewable energy.
As global attitudes towards sustainability diverge, the UK appears set to maintain or increase its regulatory pressure on building emissions. MEES is a central part of this strategy, aiming to reduce energy use in the built environment, a sector that accounts for around 40% of UK energy consumption.
How Harris Associates Can Help
Despite the challenges, compliance with MEES can unlock long-term benefits for landlords, tenants, and the environment. Improved energy efficiency reduces operational costs, enhances asset value, and contributes to wider decarbonisation goals. At Harris Associates, we support commercial landlords in meeting Minimum Energy Efficiency Standards (MEES), enhancing sustainability, and unlocking greater long-term value from their properties.
Whether you require a commercial EPC, need to improve your building's energy performance rating, or are looking to implement a long-term sustainability strategy, our team of experienced project managers, building surveyors, and cost consultants is equipped to guide you through every stage.
From compliance to carbon reduction, we deliver tailored advice and practical solutions that ensure your portfolio remains efficient, legally compliant, and resilient to future regulation. Contact us today to learn how we can help you create a more efficient, compliant, and future-proof property portfolio.
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Article By Lewis Denbow