Commercial landlords have two dates that matter: one that is already law, and one that is coming. Getting them the right way round — and not acting on the version of the rules that was quietly scrapped in 2026 — is the difference between planning calmly and panic-spending later.
What's already law: EPC E
Since 1 April 2023 it has been unlawful to continue letting a non-domestic private rented property with an EPC rating below E, unless a valid exemption is registered on the PRS Exemptions Register. The word "continue" is the trap: a lease granted years ago on an F- or G-rated unit was compliant when it started and is not compliant now. Nothing about the tenancy has to change for the landlord to fall into breach.
The penalties, set out in regulation 41 of the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015, scale with rateable value and the length of breach — up to a maximum of £150,000 for a sustained breach, with details publishable on the exemptions register. Enforcement sits with local trading standards.
What changed in 2026
For years the expected trajectory was EPC C by 2027 and EPC B by 2030. That is no longer the plan. In its June 2026 interim response on non-domestic MEES, the government confirmed a materially different position:
- The interim EPC C milestone for 2027 will not be taken forward.
- From 2031, all privately rented buildings over 1,000 square metres are intended to need EPC B, where cost-effective.
- Buildings below 1,000 square metres are intended to remain at the current EPC E minimum.
- The change will only take effect after secondary legislation passes through Parliament — so it is a confirmed intention, not yet enforceable law.
The government estimates the targeted approach will cut tenants' bills in the largest rented buildings by around £360 million a year by 2031.
What this means for you
The practical read-across depends on your building:
- Any commercial let below EPC E today is a live compliance problem, not a future one. The penalty clock is already running, and it grows with the length of breach. This is the priority.
- Larger buildings (over 1,000 m²) now have a longer runway to EPC B than the old 2030 date implied — but B is a demanding standard, and 2031 arrives quickly for major plant or fabric upgrades. Early, phased planning is far cheaper than a deadline scramble.
- Smaller buildings look set to stay at E for the foreseeable future — but "set to" is doing work there; policy has already shifted once, so E is the floor to hold, not a reason to stop improving.
Where to start
Every EPC lodged in England and Wales is on the public register, so you can check the rating and expiry of any building you own without commissioning anything. From there, a current commercial EPC assessment does two useful things: it confirms your exact position against the E floor, and — because non-domestic ratings are driven heavily by heating, cooling, lighting and controls rather than just fabric — it usually reveals cheaper routes to a better band than owners expect.
For the detail on when a commercial EPC is required and how the assessment differs from a domestic one, see our guide to commercial EPCs and MEES.