New EPC Requirements for Commercial Properties: What They Mean for Your Business

Energy Performance Certificates (EPCs) are becoming an increasingly important part of managing commercial property in England and Wales. With regulations tightening and new targets on the horizon, it’s essential to understand what is changing, what it means for your assets, and how to plan ahead in a way that is practical, cost-effective, and fully compliant.

As a commercial property consultancy with extensive experience supporting landlords, investors, and occupiers, we focus on helping clients navigate these changes with clarity, confidence, and a strong emphasis on delivering a smooth, well-managed customer experience.

What is an EPC and why does it matter?

An Energy Performance Certificate (EPC) is an official document that rates a building’s energy efficiency on a scale from A (most efficient) to G (least efficient). It is produced following an assessment by an accredited energy assessor, who evaluates key building systems including insulation, heating, cooling, lighting, and overall energy performance.

Beyond being a legal requirement, EPCs provide valuable insight for commercial property owners by:

  • Offering transparency to tenants, investors, and buyers

  • Highlighting likely energy costs and operational efficiency

  • Identifying practical, cost-effective improvement opportunities

In today’s market, EPC ratings are no longer just compliance metrics, they are a key factor in asset value, marketability, and long-term investment performance.


Current EPC requirements (2023-2026)

Since April 2023, the Minimum Energy Efficiency Standards (MEES) require:

  • All commercial properties to hold a minimum EPC rating of E.

  • This applies to both new and existing leases.

  • Properties rated F or G are legally unlettable, unless a valid exemption applies.

Landlords must ensure compliance is maintained throughout the life of the tenancy, not just at point of letting.

What’s changing: New EPC requirements for 2025 and beyond

The regulatory landscape is continuing to evolve, with clear long-term targets already set out:

  • By 2027: Minimum EPC rating of C.

  • By 2030: Minimum EPC rating of B.

Alongside these targets, the assessment and compliance framework is becoming more detailed and demanding.

  • EPC assessments are placing greater emphasis on:

    • Building fabric performance (insulation and heat retention)

    • Heating, ventilation, and air conditioning systems

    • Efficiency of fixed building services and plant equipment

    These systems will need to demonstrate improved efficiency standards to achieve higher ratings.

  • Property owners may be required to provide:

    • Detailed energy consumption data.

    • Carbon emissions reporting.

    • Evidence of energy efficiency improvements.

    • Third-party verification in certain cases.

    • Formal compliance declarations.

    This shift supports a more transparent and data-driven approach to building performance.

  • EPC validity may reduce from 10 years to approximately 5–7 years, ensuring ratings remain accurate and reflective of current building condition.

  • Under proposed timelines, landlords may need to demonstrate progress ahead of enforcement dates. For example:

    • Evidence supporting EPC B compliance may be required by April 2028, ahead of the 2030 deadline.

What do you need to do?

From a consultancy perspective, the most successful approach is structured, early planning supported by clear technical understanding.

1. Understand your current EPC position.

A full review of your existing EPC rating is the starting point, including identification of any compliance risks across your portfolio.

2. Engage specialist support early.

Working with experienced consultants and accredited assessors ensures you receive accurate advice, realistic upgrade pathways, and costed improvement options.

3. Develop a phased improvement strategy.

Rather than reactive upgrades, a planned approach helps prioritise the most effective measures, such as:

  • Upgrading insulation and building fabric.

  • Improving glazing performance.

  • Replacing inefficient heating and cooling systems.

  • Transitioning to LED lighting.

  • Considering renewable energy solutions where viable.

4.Monitor regulatory developments.

As the framework continues to evolve, ongoing review ensures your strategy remains aligned with future requirements.


How will this impact your business?

Budget Plans

Improvement works will require investment, particularly for older or less efficient assets. Early planning allows costs to be managed and phased more effectively.

Compliance and leasing risk

Failure to meet required standards may result in:

  • Restrictions on letting or re-letting assets.

  • Reduced asset value and marketability.

  • Increased regulatory exposure.

Increased asset management requirements

More frequent assessments and enhanced reporting will require a more proactive and structured approach to property management.


How can this benefit your business?

While the changes introduce compliance responsibilities, they also present clear opportunities to enhance asset performance.

  • Reduced operational costs

Improved energy efficiency leads directly to lower utility and running costs over time.

  • Enhanced asset value

Higher EPC ratings are increasingly linked to stronger investment demand and improved valuation outcomes.

  • Improved tenant appeal and retention

Sustainable, efficient buildings are more attractive to occupiers, supporting stronger leasing performance and potential rent uplift.

  • Lower long-term maintenance risk

Upgraded building systems are typically more reliable and cost-efficient to operate.

  • Strengthened ESG and corporate reputation

Demonstrating measurable sustainability performance supports wider ESG commitments and stakeholder expectations.


A consultancy-led approach to EPC compliance

We work closely with landlords, investors, and property managers to provide clear, practical guidance at every stage.

Our approach involves:

  • Clear communication and transparency at every step.

  • Practical, cost-conscious improvement strategies.

  • Minimal disruption to tenants and operations.

  • Long-term value creation, not just compliance.

Preparing for the future

EPC standards are becoming more stringent, and expectations around energy performance are rising.

Taking a structured, early approach ensures you remain in control of both cost and programme, while avoiding the pressure and disruption of last-minute compliance activity.

EPC compliance should not be approached reactively. Leaving improvements until deadlines approach often results in increased costs, limited contractor availability, and unnecessary operational pressure.

By starting early, you can:

  • Spread investment over a manageable timeframe

  • Prioritise works based on impact and return

  • Avoid disruption to tenants and business operations

  • Take a controlled, strategic approach to compliance

As a trusted commercial property consultancy, we are here to support you through every stage of this process.

We work in a highly customer-focused way, taking the time to understand your assets, your priorities, and your long-term objectives. From EPC assessments through to fully developed improvement strategies, we help ensure compliance is achieved efficiently, cost-effectively, and with minimal stress.

 

Time is ticking

To ensure these improvements are implemented and your property remains compliant with future EPC requirements. We strongly recommend taking action sooner rather than later, as early assessment can help avoid future compliance issues and allow sufficient time for planning, budgeting, and carrying out any necessary works.

Get in touch with our Building Surveying and Project Consultancy team today on 01905 676169 or email info@gjsdillon.co.uk to take the first step towards securing your EPC requirements and receiving professional advice on the most appropriate course of action.

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