Landlords are warning that government proposals to require an A or B energy performance certificate (EPC) by 2030 for all commercial properties in England risk making 80 per cent of the market unlettable without significant investment.
The changes, stemming from a 2021 consultation, aim to tighten minimum energy efficiency standards (Mees) for offices, warehouses, shops and other commercial buildings. Although the government has yet to confirm the proposals, landlords fear both timeframes and cost burdens are unrealistic—particularly given that 83 per cent of commercial properties in major cities such as London, Manchester, Leeds and Birmingham are rated C or below.
An interim requirement for a C rating by 2027 has also come under fire. Figures from the British Property Federation (BPF) show 53 per cent of commercial buildings are currently rated D or below, making the 2027 target “unachievable” in the BPF’s view. “The sector has a critical role in tackling climate change, but we’re still waiting for clear guidance,” said Rob Wall, assistant director at the BPF. “A lack of certainty on deadlines or requirements deters owners from investing.”
Landlords are concerned about the high cost of retrofitting older properties to meet stricter EPC ratings. In addition, the timeline is narrowing, with many fearing a shortage of tradespeople able to undertake the necessary improvements in time. The BPF has urged the government to scrap the proposed 2027 target entirely and to give property owners more clarity about any final Mees regulations.
Although the Department for Energy Security and Net Zero insists that measures will be “fair and proportionate”, owners argue that the prolonged silence following the 2021 consultation has stymied any planning. Even Manchester, considered the best prepared, would see 10 million sq ft of commercial space needing an upgrade before 2030. Meanwhile, in some cities such as Bristol and Birmingham, up to 85 per cent of properties will require improvements.
The BPF says it wants to work closely with ministers to shape final regulations, but warns that until formal policy is in place, progress towards the A or B rating threshold will likely remain slow.
