EPC Ratings and Your Business Premises: What You Must Do Before 2030

If you rent commercial space, your landlord's Energy Performance Certificate obligations affect you more directly than you might expect. Understanding what is required — and what the timeline means — could influence your next lease decision significantly.

What Is an EPC and Why Does It Matter?

An Energy Performance Certificate rates the energy efficiency of a building from A (most efficient) to G (least efficient). For commercial properties, minimum standards for lettings have been tightening for several years.

Currently, it is unlawful for a landlord to grant a new lease on a property rated F or G. The government's stated trajectory — subject to final confirmation — is to require a minimum E rating from 2026, rising to C by 2027 and B by 2030 for most commercial properties.

These are not aspirational targets. A landlord who lets an EPC-non-compliant property faces substantial fines. Buildings that cannot be upgraded to comply are, in effect, becoming unlettable.

What This Means If You Are Already in a Lease

If you are currently occupying a commercial property under an existing lease, the EPC minimum applies on grant and renewal, not throughout a tenancy. Your landlord cannot terminate your lease simply because the EPC falls below the minimum — but they will face constraints on any new letting or lease renewal.

This matters at renewal time. If your premises would need significant investment to reach the required EPC rating and your landlord is unable or unwilling to invest, renewal may become complicated. Understanding the EPC position of your premises before your lease expires is therefore important.

What This Means If You Are Looking for New Space

When viewing or considering new space, ask to see the current EPC certificate. A property rated D or E is worth scrutinising carefully:

• Energy costs will be higher in a less efficient building. With energy prices still elevated, this directly affects your operational costs.
• Future lettability is uncertain for properties that will require significant works to comply with the 2030 standard. A landlord who cannot cost-effectively upgrade the building may eventually choose to sell rather than invest.
• Lease renewal risk increases if the landlord's financial position deteriorates because the asset becomes harder to finance and insure.

A B or C rated building costs more to rent in some markets but typically delivers lower energy bills and a more stable lease environment.

Negotiating on EPC Grounds

If you are considering a premises with a lower EPC rating, the compliance cost is a legitimate negotiating point. Asking a landlord to commit to specific improvement works as a condition of lease grant — or to offset your energy cost differential through reduced rent — is a reasonable position.

Some landlords will have already modelled the upgrade cost. Others have not faced the question directly. Raising it early gives both parties time to explore options.

When to Walk Away

If a landlord cannot commit to a credible upgrade programme and the EPC rating is D or below, there is a genuine risk that the property becomes significantly harder to occupy or re-let in the latter part of a five or ten year lease. For a business making a long-term commitment, this is worth weighing carefully.

A slightly higher rent in a well-specified, EPC-compliant building may well be the more cost-effective choice over the full lease term.

RE:match lets you specify the type of space you need, including EPC requirements. Landlords and agents who can match your brief — including on energy efficiency — respond directly.

Post your requirement on RE:match — it takes a few minutes and costs nothing. Landlords and agents with matching space respond directly to your brief at rematch.co.uk.

FAQ: EPC and Commercial Property

What EPC rating must my commercial premises have? Currently, F and G rated properties cannot be let. The trajectory toward requiring C by 2027 and B by 2030 is the government's stated position. Check the current position at the time of your lease — the timetable has been revised before.

Who is responsible for the EPC — landlord or tenant? The landlord is responsible for obtaining and maintaining the EPC and for ensuring the property meets minimum standards at letting. The cost of upgrade works is a landlord obligation unless the lease specifically passes it to the tenant.

Can I be asked to leave if my premises fails EPC standards? No. EPC minimum standards apply at the point of letting and renewal, not throughout an existing tenancy. However, if your lease expires and the property cannot legally be re-let, your options for renewal may be limited.

Where do I find a property's EPC rating? EPCs for commercial properties are registered on the government's Non-Domestic Energy Performance Certificate Register, accessible online. You can search by postcode or address.