As part of this endeavour, the next set of Energy Performance Certificate (EPC) regulations will take effect on 1 April 2023. 

The UK government has set a goal of achieving net zero emissions by 2050. In 2018, the Minimum Energy Efficiency Standards (MEES) were implemented, mandating that all new tenancies must have a minimum EPC rating. 

This requirement will apply to all rented commercial properties as of 1 April 2023. When purchasing a commercial property, landlords must be prepared for these changes and consider the following:

  • Ensure the property has a minimum EPC rating of E.
  • Assess existing tenancies to determine whether the EPC rating can be improved.
  • When searching for a commercial property to rent, tenants should also be aware of the EPC rating.
  • Ensure the property has a minimum EPC rating of E.
  • Learn the rights of the proprietor to enter the property for energy improvement work.

Exceptions to the MEES requirements include the following:

  • If all cost-effective energy efficiency measures have been implemented within seven years or in accordance with the “Golden Rule” of the Green Deal.
  • If consent to perform the work has been denied by a third party, such as a local authority or an existing tenant, then the work cannot be performed.
  • If a suitably qualified expert provides a written opinion that the proposed changes would result in a 5% significant decrease in the property’s value, the proposed changes will be denied.
  • Exemptions must be submitted to a centralised government registry and are valid for five years.
  • The minimum standard will be raised to band ‘C‘ by 1 April 2025.
  • Increasing the minimum standard to band ‘B‘ by 1 April 2030.
  • Please note that only commercial properties are subject to these regulations. By 2025, all residential rental units in domestic properties must have an EPC rating of C or higher.

Implementing cost-effective energy efficiency measures has multiple benefits for landlords, including lower energy bills, enhanced indoor air quality, and an increase in property value. 

There may also be financial incentives and support available to assist landlords in implementing these measures. Obtaining an Energy Performance Certificate (EPC) is simple and can be done through an authorised assessor

As a result, landlords and tenants should be aware of their responsibilities and the benefits of increasing the energy efficiency of commercial properties.

Check your EPC Rating