Resource
26 May 2026
For landlords, managing agents, estates teams and commercial property owners, Energy Performance Certificate (EPC) ratings have become more than a simple administrative obligation. They now serve as a key measure of compliance risk, future rental potential and long-term asset resilience under building regulations.
Minimum Energy Efficiency Standards, known as MEES, use EPC ratings to determine whether certain rented properties meet the required energy efficiency standard. The current minimum standard is linked to EPC E, but policy direction continues to point towards higher expectations for building performance, carbon reduction and transparency.
GOV.UK has confirmed that reforms to the Energy Performance of Buildings regime are progressing, with further responses and regulations expected in 2026, subject to parliamentary approvals. The consultation and partial government response cover how EPCs measure building performance, when EPCs are required, EPC data, quality, DECs and air conditioning inspection reports.
That means property owners should avoid treating EPCs as a once-every-few-years compliance exercise. Instead, EPCs should be used as a portfolio planning tool, helping you identify which buildings may become harder to let, sell, finance or operate if standards change.
An Energy Performance Certificate, or EPC, indicates the intrinsic energy performance potential of a building using a rating system from A to G, where A is very efficient and G is the least efficient.
An EPC is required by law on construction, let or sale of a commercial building over 50m², and that EPCs should be lodged on the Government Central Register.
MEES is the regulatory framework that uses EPC ratings to set minimum energy efficiency standards for rented properties.
Zenergi’s MEES service supports organisations by managing the route from survey through to identifying and implementing cost-effective improvements that enhance EPC ratings, increase property value and support compliance.
In practical terms:
For property portfolios, the commercial risk is not only whether a building is compliant today. The bigger question is whether it is likely to remain compliant, lettable and attractive as regulation, occupier expectations and investment criteria evolve.
A stranded property asset is a building that becomes harder to let, sell, insure, finance or operate because it no longer meets market, regulatory or performance expectations.
For property owners, poor EPC ratings can create several risks:
Zenergi’s EPC guidance explains that commercial EPCs use A-G ratings and numeric scores to show how a building performs, with higher-scoring, less efficient buildings requiring more urgent improvement. This makes EPC data a useful starting point for identifying at-risk properties across a portfolio.
EPCs, MEES and building regulations all sit within the wider world of building compliance, but they are not interchangeable.
EPCs assess energy performance. MEES sets minimum energy efficiency standards for rented property. Building regulations set technical requirements for building work, including areas such as energy efficiency, safety and accessibility.
That distinction matters because a property may have documents relating to building control or past works but still need a valid EPC or MEES improvement plan. Equally, a good EPC rating does not automatically remove every compliance obligation attached to a building.
When reviewing property files, owners should avoid confusing an EPC with a building regulations certificate or a building regulations compliance certificate.
Each document serves a different purpose, and different evidence may be needed to show that a property can comply with the regulations that apply to its use, works, letting or sale.
GOV.UK’s partial response to the Energy Performance of Buildings regime consultation confirms that the government intends to update regulations so an EPC is required at the point of marketing a property, rather than the point of sale or rent. It also confirms that further responses will follow in 2026, including areas such as EPC and DEC data, quality, air conditioning inspection reports and whether valid EPCs will be required throughout private rented tenancies
For privately rented homes, GOV.UK has also consulted on higher MEES using new EPC metrics following EPC reform, including fabric performance, smart readiness, and the efficiency and emissions of the heating system. The consultation proposed higher standards for new tenancies from 2028 and all tenancies by 2030, while recognising that final policy and explicit standards would follow after the EPC reform process.
For commercial property owners, this reinforces an important planning point: policy is evolving, and property strategies should remain flexible. Organisations should monitor official updates, review EPC data regularly and avoid making improvement decisions based only on today’s minimum standard.
How to identify properties most at risk
A practical MEES and EPC risk review should start with a clear view of your current portfolio. This includes checking:
EPC assessors may use SBEM or DSM modelling, with DSM offering a more detailed and accurate energy assessment for complex or larger properties with multiple zones.
For portfolio owners, this means EPC strategy should not be limited to obtaining a certificate. A more valuable approach is to use modelling, surveys and improvement planning to prioritise spend where it will have the greatest compliance, operational and asset-value impact.
The right improvement pathway will depend on the building, its services, occupancy, age, existing fabric and future use. Common areas to review include:
Building fabric: Improving insulation, windows, doors and air tightness can reduce heat loss and improve comfort. This plays a significant role in energy and carbon performance.
Heating, ventilation and air conditioning (HVAC): HVAC systems are often major energy users. Upgrading inefficient systems, optimising controls and reviewing the Building Management System can help improve performance and reduce waste.
Lighting: Switching to LED lighting can reduce electricity use, improve controllability and support more efficient operation, particularly when combined with sensors, daylight controls and timers.
Renewable energy: Renewable energy can support a more sustainable building strategy. Renewable energy and EPC guidance highlights solar power as a scalable option for commercial buildings and recommends starting with an EPC assessment or energy audit to understand current performance.
Modelling and staged implementation: Not every improvement needs to be delivered at once. A phased plan can help owners sequence works around leases, budgets, occupier needs and planned maintenance.
This is where compliance planning and capital planning should work together. The aim is not simply to reach the next rating band, but to make informed decisions that reduce the risk of stranded property assets over time.
A strong MEES and EPC action plan should include five stages:
Create a central register of EPC ratings, expiry dates, property types, lease events and known improvement recommendations. This helps identify immediate risks and buildings that may need reassessment.
Prioritise properties with lower EPC ratings, imminent lease events, older services, high energy consumption or strategic importance. Buildings rated E, F or G should receive early attention, especially where future standards may affect lettability.
Use EPC modelling or energy audits to compare improvement pathways. Some measures may deliver a modest rating improvement, while others may create a stronger long-term pathway towards compliance, reduced energy consumption and net zero goals.
Energy improvements are often more cost-effective when aligned with planned refurbishment, tenant fit-out, lifecycle replacement or wider decarbonisation programmes.
Because EPC reform and MEES policy are evolving, asset owners should keep plans under review. A building that appears low-risk today may need different evidence, modelling or upgrades as the regime changes.
Zenergi supports organisations across energy compliance, energy performance and net zero planning. Our services help property owners understand current EPC ratings, assess MEES exposure and identify practical improvement routes.
Our EPC service can help certify real estate quickly and efficiently, with follow-on consultation on how to improve property energy performance. Our MEES service manages the process from survey through to identifying and implementing cost-effective improvements to enhance EPC ratings and support compliance.
