FAQs: Non-domestic private rented property: minimum energy efficiency standards for commercial property

Propertymark’s response to the Department for Energy Security and Net Zero (DESNZ) consultation sets out a clear and urgent case for reform of the scheme, which provides financial support for households in England and Wales to install low-carbon heating systems like heat pumps or biomass boilers. A more ambitious scope is needed to help overcome the barriers landlords face in meeting the UK Government’s energy efficiency ambitions — especially the proposed Minimum Energy Efficiency Standard (MEES) of EPC C for new tenancies by 2028.

The Propertymark Commercial Outlook Q1 2025 reveals a resilient commercial property sector navigating economic uncertainty with cautious optimism. While inflation remains above target and lending challenges persist, strong confidence continues in the Industrial and Class E sectors.

The UK Government has confirmed the change will be part of the upcoming Future Homes Standard, to be published this autumn. Propertymark supports efforts to reduce household energy costs and improve energy efficiency in new homes but has urged Ministers to address practical implementation challenges and ensure support is in place for the UK’s 29 million existing homes.

The Act, now over 70 years old, gives business tenants a legal right to renew their leases in many circumstances — a framework that has faced growing criticism for being outdated and overly complex. Propertymark responded to the consultation, advocating for modernisation of the legislation to reflect the current needs of businesses. These initial recommendations come as part of a wider review focusing on how well the law is functioning for commercial property leases.