2025 EPC Regulations: A Guide for UK Commercial Landlords

If you're a UK commercial landlord, staying ahead of legislative changes is crucial to protecting the value and compliance of your property portfolio. One of the most urgent updates involves the tightening of Energy Performance Certificate (EPC) regulations and it's happening soon.

Whether you lease out offices, retail units, warehouses or mixed-use spaces, the new EPC regulations 2025 for commercial property mean you need to be proactive. Inaction could leave you with a stranded, non-compliant asset.

What is an EPC and why should you care?

An Energy Performance Certificate (EPC) rates a building’s energy efficiency from A (most efficient) to G (least efficient). It’s legally required whenever a property is built, sold, or let. For landlords, EPCs are not just about compliance, they can also influence tenant appeal, property value, and access to finance.

Minimum EPC requirement for commercial properties

As of April 2023, all commercial properties in England and Wales must have an EPC rating of E or higher to be legally let. This includes both new and existing leases.

By April 2025, all let commercial properties must have a valid EPC certificate. This means landlords with expired certificates must renew them, even if no lease activity is taking place.

The following further changes are expected:

• 2023: All commercial properties (new and existing leases) must have a minimum EPC rating of E.

• 2025: All let properties must have a valid EPC. Expired certificates must be renewed.

• 2028 (proposed): Minimum EPC rating likely to rise to C for all let commercial buildings.

• 2030 (proposed): Further increase to minimum EPC rating of B for all let commercial properties.

New rules for landlords in 2025

From April 1, 2025:

• It will be unlawful to let any commercial property without a valid EPC.

• If your property falls below EPC E, you cannot legally lease or continue leasing it.

• The property will need to be upgraded or registered for an exemption.

Enforcement is led by local authorities and can result in:

• Fines of £5,000 to £150,000

• Public enforcement notices

• Lease terms potentially deemed unenforceable

MEES and EPCs

The Minimum Energy Efficiency Standards (MEES) were introduced under the Energy Act 2011 to improve building energy performance.

MEES applies to commercial landlords and requires:

• Properties to meet the minimum EPC threshold (currently E, rising to C/B)

• Non-compliant landlords to either upgrade the property or register an exemption

EPC Myths vs. Facts

There’s a lot of misinformation around EPC obligations. Let’s set the record straight:

• Myth: You only need an EPC when changing tenants.
  Reality: EPCs apply to existing leases too, since 2023, this includes all commercial lets.

• Myth: You’re exempt if upgrades are too expensive.
  Reality: Not automatically. You must apply and register a formal exemption.

  
  

• Myth: An old EPC is still valid.
  Reality: EPCs last 10 years. If it’s expired in 2025, you need a new one.

  
  

• Myth: Listed buildings are always exempt.
  Reality: Only if energy improvements would negatively alter the building’s character - and you must prove it.

  
  

  

  
  

  How to improve your EPC rating:

Making targeted upgrades now will save time, money, and stress. This is especially so with stricter standards expected in the years ahead. These are our recommended ways to boost your EPC rating:

1. Upgrade Lighting

• Switch to LED systems

• Use motion detectors or daylight sensors

2. Improve Heating and Cooling

• Install modern Heating, Ventilation and Cooling (HVAC) systems

• Add zoning controls and smart thermostats

3. Boost Insulation

• Insulate walls, roofs, and suspended floors

• Draught-proof doors and windows

4. Install Efficient Glazing

• Replace single glazing with double or triple glazing

• Use solar-reflective coatings or film

5. Generate Renewable Energy

• Fit rooftop solar PV panels

• Consider battery storage to maximise on-site energy use, such as our zero-capex GreenBattery

6. Monitor and Manage Energy Use

• Install a Building Energy Management System (BEMS)

• Use smart meters to identify consumption trends

2028 and 2030 EPC changes

The government’s long-term ambition is clear: drive commercial buildings toward zero emissions. The proposed trajectory sets out that:

• By April 2028, all let commercial buildings must achieve at least an EPC C.

• By April 2030, the standard is expected to rise again to EPC B.

While these targets have not yet been enshrined in law, they are part of the UK’s net zero strategy and the property sector is expected to align.

What this means for landlords

If your commercial property is currently rated D or E, reaching a B rating will likely require:

• Major upgrades to HVAC and lighting

• Full insulation reviews and building fabric improvements

• Integration of renewable technologies

• Potential redesigns of older buildings

The longer you wait, the more expensive and disruptive these upgrades may become.

Risks of waiting

• Increased costs due to last-minute demand for contractors and materials

• Tenant churn if the property becomes non-compliant mid-lease

• Devaluation of assets if buyers or investors downgrade below-C properties

• Void periods while properties are refurbished or left unlettable

Act now

Landlords who begin planning now can:

• Spread the costs of improvement works

• Time upgrades with tenant changeovers or fit-outs

• Take advantage of current grants or green loans

• Future-proof their portfolio against further regulations

Getting to EPC C or B now is not just about avoiding penalties. It’s about maintaining competitive advantage and unlocking future value.

EPC Compliance Checklist

Use this step-by-step list to stay on track:

• Check if your property has a valid EPC

• Identify its current rating and target improvements

• Schedule an energy assessment or audit

• Review quick wins (LEDs, insulation, HVAC)

• Explore solar or battery options

• Get quotes and plan a staged upgrade

• Commission a post-upgrade EPC

• Register any valid exemptions if necessary

• Keep all records for MEES compliance

• Monitor updates ahead of the 2028 and 2030 milestones

Need help assessing where to start? VEST can provide a tailored EPC improvement roadmap.

Final thoughts

The 2025 EPC regulations for commercial property are just the beginning of a broader transformation in the UK built environment. Commercial landlords who wait until the last minute risk high costs, limited contractor availability, and falling behind legislative deadlines.

The smartest play now? Treat EPC E as a temporary floor, and aim for C or B, especially if you want your properties to stay competitive, financeable, and legally lettable by 2030.

At VEST, we help commercial landlords upgrade efficiently and strategically; from EPC assessments to solar installs and energy storage. Get in touch for a consultation or portfolio review today.

Contact us here.