The Minimum Energy Efficiency Standards (MEES) are regulations that came into force in England and Wales on 1 April 2018. The regulations apply to privately let residential property and all commercial properties. MEES are intended to encourage landlords to improve their properties’ energy performance rating.
Why EPCs Matter:
An Energy Performance Certificate (EPC) rates a property’s energy efficiency from A (best) to G (worst). ECPs are important in any property sale because they provide:
- Legal compliance: An EPC is legally required when selling or letting a property.
- Informed decisions: The EPC informs buyers and tenants about the property’s potential energy costs.
- Energy efficiency improvements: The EPC highlights cost-effective ways to improve the property’s energy rating.
- Market value: A higher EPC rating can increase a property’s market appeal and value.
The Northern Ireland Context:
Unlike England and Wales, Northern Ireland does not have MEES-equivalent regulations. However, recent government consultations such as the Fuel Poverty Strategy by the Department for Communities, and the review of energy efficiency requirements and related areas of Building Regulations by the Department for Finance suggest that stricter energy standards may be on the horizon.
If Northern Ireland does align with England and Wales, the commercial property sector could face significant financial and compliance challenges.
Under existing MEES rules in England and Wales, all commercial lettings must meet a minimum EPC rating of E. Proposed changes aim to raise this threshold to a C rating by 2028 and a B rating by 2030. Landlords unable to meet these standards—unless exempt—may be barred from granting or renewing leases and could face enforcement penalties. In effect, properties with poor energy ratings may become increasingly difficult, or even impossible, to let.
There are buildings in Belfast which already have high EPC ratings, reflecting their energy-efficient design and performance. These buildings include Ewart Tower with an A rating and the Kelvin and the City Quays having B ratings. Properties with a high energy rating are increasingly attractive to top tier tenants as they are prioritising sustainability and efficiency commitments. As a result, buildings with higher EPC ratings are well-positioned to command greater interest and potentially higher rental values in an already competitive market.
Potential Implications for Landlords in Northern Ireland:
The cost and scale of works could be significant. As a large portion of commercial property across Northern Ireland currently sits below the minimum ratings this might mean that many older properties will need substantial fabric upgrades, heating upgrades, controls, and possibly whole-building redevelopment, with no guarantee that any occupational leases in place allow tenants to be recharged for some or all of these costs.
If Northern Ireland aligns with England & Wales, commercial landlords in Northern Ireland should expect:
- a requirement to upgrade the EPC rating when letting/renewing or by staged deadlines
- increased tenant demand for higher-performing premises or potentially longer vacancies for properties with an inefficient energy rating; and
- higher transaction, professional and compliance costs
Preparing for the uncertain road ahead:
Landlords in Northern Ireland should consider the checklist below as regulations on MEES continue to evolve:
Know Your Property
- Ensure every property has a current valid EPC and identify high risk properties particularly those rated F or G
Plan
- Consider energy surveys to identify upgrade costs but prioritise low-cost, high impact works (lighting, controls, insulation)
Funding
- Explore green finance considering green loans, ESG-linked mortgages, or government-backed schemes.
Tenant Engagement
- Review lease clauses to consider “green lease” provisions to share upgrade responsibilities and costs.
Stay Informed
- Monitor consultations as MEES continue to be debated at a regional and national level.
- Engage advisors as legal, valuation and sustainability consultants can help improve compliance.
The Bottom Line:
MEES are not yet a legal requirement in Northern Ireland, but there is an increasing number of tenants looking for properties that align with their sustainability goals. Landlords should start considering futureproofing their portfolio now as upgrading can take time and money. Taking early steps puts landlords in a stronger position for any future changes while equally helping attract tenants who are already prioritising more energy-efficient spaces.
Key Take Away:
Start with EPCs and assess the risk now. All landlords should be prepared to treat energy performance as a property management priority going forward.
Need Advice? Mills Selig are here to help:
Mills Selig are residential and commercial property experts and will guide you through all aspects of property management, compliance and future planning.
If you want to understand your risk exposure, prepare for potential MEES changes, or explore upgrade and funding options, our team is ready to support you.