If you’re a commercial landlord or commercial property owner, you’ve probably heard a lot about EPCs (Energy Performance Certificates). An EPC is a legal document that rates a commercial building’s energy efficiency and carbon emissions, and an EPC is required for all commercial properties.
Our commercial property expert Leigh Doherty shares what you need to know and do to stay on the right side of the law.
What is an EPC?
An EPC tells you how energy-efficient a building is, giving it a rating from A (super efficient) to G (very poor). It also suggests ways to make the property better for energy use. If you’re renting, selling, or building a commercial property, you need to have one.
Why do I need an EPC?
EPCs might feel like just another bit of red tape for commercial property landlords. But they’re actually important for two reasons:
1. It’s the law – You can’t rent out a property without meeting the minimum standard.
2. Rentability – More tenants are looking for energy-efficient spaces because they mean lower bills. A good EPC can make your property stand out.
What you need to know about EPCs
Here’s what’s happening with commercial properties EPCs right now:
- • Minimum standards: Since April 2023, all commercial properties must have at least an E rating to be rented out. That includes existing leases, not just new ones.
- • What’s coming: By 2027, there’s talk of the government raising the minimum to a C, and by 2030, it could be a B. That’s a big jump, so it’s worth planning ahead.
- • Exemptions: There are some exceptions (e.g. listed buildings or where upgrades aren’t cost-effective), but you’ll need to register these.
What happens if you don’t comply?
If your commercial property doesn’t comply with the rules, fines can range from £5,000 to £150,000 depending on the property and how long you’ve been breaking the rules. It could also hurt your reputation, as tenants might see you as a less reliable landlord.
How to get ahead of any changes
1. Check your ratings: Find out what your most recent EPC rating was. EPCs last for 10 years, but it’s worth checking them more often – especially with the new rules coming.
2. Make some upgrades: Common fixes that are easy to implement include insulation, double glazing, or swapping old lights for energy-efficient ones.
3. Look into exemptions: If your property qualifies, make sure to register it.