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RIB: 78% Westminster, 71% City offices will fail MEES, London real estate in crisis
A property consultancy analysis finds a large share of London offices in Westminster and the City of London will fail MEES compliance. The looming early-2030s EPC requirement, plus capital, labor, and financing hurdles, could drive a two-tier market and stranded assets across central London.
Why It Matters
If many offices fail MEES, London could see stranded assets and higher vacancy in older stock, while compliant buildings may attract premium rents and investment opportunities for those able to upgrade.
Timeline
2 Events
May 13, 2026 — RIB analysis on MEES compliance in Westminster and City of London
May 13, 2026
RIB's analysis of government data finds that 78% of offices in Westminster and 71% in the City of London will fail to meet MEES targets expected to apply in the early 2030s. The government requires an EPC rating no lower than B by the early 2030s, demanding substantial capital expenditure amid labor shortages and financing constraints. The firm estimates more than 12,000 central London offices need significant upgrades, with Westminster having more than three-quarters at risk of obsolescence. Only about 4% of City offices hold the top EPC rating A. The findings suggest a two-tier market where high-performing buildings command premium rents and values, while older, non-compliant stock face lower rents and longer void periods.
February 2026 — Bloomberg reports EPC-driven investment activity
February 2026
Bloomberg reported that investors including Blackstone Inc., Brookfield Asset Management Ltd., and Henderson Park Capital Partners were engaging in deals related to EPC-driven opportunities as the deadline approaches.