The government has suggested that it may relax rules around energy performance certificates that would have made all commercial buildings below a B rating effectively obsolete by 2030.
Under proposals brought in by the previous Conservative government, commercial buildings would have needed a minimum rating of EPC C by 2028 and B by 2030 if they were to be sold or let, even to existing tenants.
However, a spokesperson for the Department for Energy Security and Net Zero has told EG that it is planning a review of all aspects of the regulations, including the timelines, to ensure regulations are “fair and proportionate for landlords and tenants.”
The previous administration announced in September 2023 that it would scrap rules on domestic EPC ratings that would have forced residential landlords to have an EPC rating of C by 2025 (or 2028 for existing tenancies) on their properties.
In January this year, Claire Coutinho, who served as secretary of state in the DESNZ between August 2023 and July 2024 under the Conservative administration, confirmed that commercial landlords would not have to achieve an EPC B rating by 2025, but did not provide any guidance on the 2030 deadline.
According to EG Radius analysis, based on current EPC ratings, the existing rules on EPCs in the commercial sector could see more than £8bn of rent put at risk, with 413m sq ft of space failing to meet the EPC B standard.
The situation would be particularly stark in some secondary regional office markets, with several areas left with no tradable stock without substantial improvement.
The DESNZ spokesperson said it was currently helping commercial property decarbonise through business rates exemptions on green technology, small business grants thought the Boiler Upgrade Scheme, and it was also piloting an energy audit and grant scheme for small businesses in the West Midlands.
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