Government sets EPC B target for commercial buildings by 2031

The government has announced that commercial buildings of more than 1,000 square metres will be required to meet EPC B targets by 2031.

Under the plans, private rented non-domestic properties of this size in England and Wales will need to reach the higher energy efficiency standard “where cost-effective”.

For smaller commercial buildings under 1,000 square metres, the government has confirmed they will remain subject to the current minimum EPC E requirement.

Fair and proportionate

Speaking in Parliament, Minister for energy consumers Martin McCluskey said: “This targeted approach focuses action where it delivers the greatest benefits, helping tenants in the largest buildings to save energy and reduce bills, protecting them from future energy shocks.

“While continuing to improve the poorest performing buildings through the existing EPC E standard, we are giving additional flexibility to our SMEs and high streets to upgrade their buildings over time, with no set deadline for going beyond this level.

“With a fair and proportionate timetable, the policy supports business investment, reduces exposure to volatile energy prices and strengthens UK energy security.

“We will continue to work closely with industry and other stakeholders to ensure that the pathway to EPC B is fair, clear and deliverable.”

Start preparing now

An industry body has welcomed the government’s clarity but warns commercial agents need to start preparing now.

Propertymark said on its website: “The revised approach gives greater clarity, but it does not remove the need for long-term planning. We have previously reported research indicating that the commercial property sector was on track to miss the UK Government’s 2030 MEES target by a decade, with full compliance projected only by 2040.

“That research also found that more than 13,000 commercial rental properties still held EPC ratings of F or G, making them non-compliant and unlettable under current rules. The pace of upgrades had also slowed, with a 20% year-on-year decline in properties achieving higher EPC ratings of A* to B in 2024.

“Commercial agents should review portfolios to identify buildings over 1,000 square metres, check current EPC ratings, and begin conversations with landlords and tenants about likely improvement works.

“Although the EPC B requirement is not yet law, the government has made clear that it aims to introduce legislation and updated guidance at the earliest opportunity, while working with stakeholders on the details”.

The news comes as, under the Warm Homes Plan, all private rented sector properties need to meet EPC C targets by 2030.