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Commercial landlords · Regulatory update

EPC ratings and the 2031 commercial MEES target: what Sheffield businesses need to do

The government confirmed non-domestic rented buildings over 1,000m² will need to reach Band B by 2031 — up from the current Band E minimum. Here's what it means, who it affects, and what to do now.

What is the 2031 commercial MEES target?

The Minimum Energy Efficiency Standards (MEES) for commercial property have applied in stages: from 1 April 2018, new, renewed, or extended lettings could not be granted on F or G rated buildings; from 1 April 2023, this was extended to cover all non-domestic lettings, including existing tenancies that hadn't changed. The current legal minimum is Band E — properties rated F or G cannot be let without a registered exemption.

On 18 June 2026, the government confirmed — via the outcome of its MEES consultation — that rented non-domestic buildings over 1,000m² will need to reach Band B by 2031. This follows the same policy pathway as the domestic EPC C target confirmed in January 2026: it is confirmed government policy, but not yet law. It will take effect only once secondary legislation has passed through Parliament.

An interim step of Band C by 2027 had previously been proposed for larger buildings. The June 2026 announcement confirmed this interim milestone has been dropped — there is no new short-term deadline before 2031.

Are you affected?

The 2031 requirement will apply specifically to rented non-domestic buildings over 1,000m² of floor area. If your buildings are smaller than this, the current Band E minimum continues to apply for now — there is no change to your obligations at this stage.

Your current obligations

The current MEES minimum of Band E is already law. It applied to new, renewed, or extended lettings from 1 April 2018, and was extended to cover all non-domestic lettings — including continuing tenancies with no change — from 1 April 2023. Letting an F or G rated building without a registered exemption can result in a financial penalty of up to £150,000, enforced by your local weights and measures authority, with breaches published on a national register.

Exemptions and the payback rule

The government has confirmed that existing exemption routes and the 7-year payback test are expected to continue under the new regime. In practice, this means you will only be required to make improvements that pay for themselves within 7 years — not open-ended spending to reach Band B regardless of cost.

What does Band B mean — and where does your building stand?

Commercial EPCs run on a wider scale than residential — A+ down to G — assessed using SBEM (Simplified Building Energy Model) calculations rather than the SAP (new-build) or RdSAP (existing homes) calculations used for residential properties. Band B sits above the median rating for most commercial stock, so many landlords with older or less efficient buildings will have real work to do before 2031.

Sheffield commercial EPCs

69%

of commercial properties in Sheffield are currently rated below Band B

Based on all commercial EPCs recorded in Sheffield — not filtered by floor area or tenure, so the proportion specifically affected by the 1,000m²/2031 requirement will differ from this figure.

The right combination of improvements depends entirely on your building — its construction, fabric, and existing systems. Rather than assuming generic measures will apply, a MEES Consultancy assessment finds the most suitable approach for your specific building.

What to do now

There's no interim deadline before 2031 — but landlords who start planning now have the most options, and the most time to spread the cost.

  1. 1

    Check your current commercial EPC rating

    If you don't hold a current commercial EPC, or you're unsure of your building's rating, book an assessment. If your building is over 1,000m², note that the Band B target will apply to you from 2031.

    Book a Commercial EPC
  2. 2

    Book a MEES Consultancy assessment

    A MEES Consultancy uses the raw data from your commercial EPC survey to find the most suitable approach for your building's improvements, moving you towards Band B. Unlike the auto-generated recommendations on your EPC certificate, it gives you a guaranteed outcome, not a software estimate.

    Book MEES Consultancy
  3. 3

    Start planning ahead of 2031

    There's no interim deadline before 2031, but the improvements required to bring your property to the required rating take time to plan, budget, and install across a portfolio. Acting early means more competitive pricing and no last-minute scramble as the deadline approaches.

Frequently asked questions

Does the 2031 target apply to all commercial properties?
No — it applies specifically to rented non-domestic buildings over 1,000m² of floor area. Buildings below 1,000m² remain subject to the current EPC E minimum for now, with no change to their obligations at this stage.
What happened to the interim EPC C requirement for 2027?
It's been dropped. An interim step of Band C by 2027 had previously been proposed for larger buildings, but the government's June 2026 announcement confirmed this milestone will not be taken forward — there is no new short-term deadline before 2031.
Will exemptions still be available if I can't reach Band B cost-effectively?
Existing exemption routes and the 7-year payback test are expected to continue under the new regime. In practice, this means only improvements that are practical, affordable, and pay for themselves within 7 years will be required — not open-ended spending regardless of cost.
What's the current legal minimum, and what happens if I don't comply?
EPC E remains the current legal minimum. It applied to new, renewed, or extended commercial lettings from 1 April 2018, and was extended to all non-domestic lettings — including continuing tenancies with no change — from 1 April 2023. Letting an F or G rated building without a registered exemption can result in a financial penalty of up to £150,000, enforced by your local weights and measures authority, with breaches published on a national register.
Is the 2031 Band B target actually law yet?
Not yet. It is confirmed government policy following the outcome of a consultation announced on 18 June 2026, but it will only take effect once secondary legislation has passed through Parliament — the same pathway as the domestic EPC C target confirmed in January 2026.
How can I find out where my building stands against a Band B target?
Book a MEES Consultancy assessment. It uses the data collected during your commercial EPC survey to model multiple improvement scenarios, helping you find the most suitable approach for your building before committing to any work.

Book a MEES Consultancy assessment

Get expert guidance on the most suitable improvements for your building to meet the 2031 Band B target.

Energy Performance Certificate (EPC)

Required when selling, letting, or building. Accredited domestic and commercial assessors across Sheffield and South Yorkshire.

From 2 working days

MEES Consultancy

Bespoke modelled improvement scenarios using real EPC survey data — showing the most effective route to your target rating.

From 2 working days

Display Energy Certificate (DEC)

Required for public-authority buildings over 250m². NDEA-accredited assessors for schools, councils, and NHS buildings.

From 5 working days

TM44 Air Conditioning Inspection

Required for buildings with AC systems totalling 12kW or more combined output. Renewed every five years.

From 10 working days

Fire Risk Assessment

Required for all non-domestic premises and communal areas of HMOs and residential buildings.

From 10 working days

Electrical Installation Condition Report (EICR)

Mandatory for all private landlords since 2020. Qualified electricians covering residential and commercial properties.

From 5 working days

Gas Safety Certificate

Annual legal requirement for landlords and many accommodation providers. Gas Safe registered engineers.

From 3 working days

PAT Testing

Demonstrates compliance with electrical safety duties for landlords, employers, and HMO licence holders.

From 5 working days

Legionella Risk Assessment

Legal duty for all landlords and duty holders under COSHH Regulations and HSE ACoP L8. Professional assessments for HMOs and commercial premises.

From 5 working days

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