In London’s competitive real estate market, energy efficiency is becoming increasingly important—not just for residential properties, but for commercial buildings too. Whether you’re leasing, selling, or developing commercial space, understanding your obligations under the Energy Performance Certificate (EPC) regulations is essential.
Here’s everything you need to know about EPC requirements for commercial properties in London.
What Is an EPC for Commercial Properties?
An Energy Performance Certificate (EPC) assesses the energy efficiency of a commercial building and gives it a rating from A (most efficient) to G (least efficient). It also provides recommendations for improving the property’s energy use.
The EPC must be issued by an accredited non-domestic energy assessor and is valid for 10 years.
When Is a Commercial EPC Required?
You must obtain and display an EPC when:
Selling a commercial property
Leasing or renting to new tenants
Constructing a new commercial building
Modifying a building to have different heating, cooling, or mechanical systems
The EPC must be made available to prospective buyers or tenants as soon as the property is marketed.
Minimum Energy Efficiency Standards (MEES)
Since April 1, 2018, the UK government has enforced Minimum Energy Efficiency Standards (MEES), requiring that:
Commercial properties must have an EPC rating of E or above to be legally rented or leased.
From April 1, 2023, these rules apply to existing leases as well—not just new ones.
This means landlords must bring F or G-rated properties up to at least an E rating before letting or continuing to let the property—unless they qualify for an exemption.
Exemptions from MEES
Some exemptions may apply, including:
Listed buildings, where energy efficiency improvements would alter the character of the property.
Short leases under six months (without renewal options).
Properties with leases of 99 years or more.
All cost-effective improvements have been made, but the property still doesn’t meet the E rating (subject to evidence).
Exemptions must be registered on the PRS Exemptions Register and are typically valid for five years.
Display Energy Certificates (DEC)
If your commercial property is:
Publicly accessible
More than 250m² in size
Frequently visited by the public
You may also need a Display Energy Certificate (DEC), which shows actual energy usage. This is different from an EPC, which shows theoretical efficiency.
How to Get an EPC for a Commercial Building
Hire a non-domestic energy assessor accredited by the appropriate body.
Allow access for an energy assessment, including HVAC systems, insulation, lighting, etc.
Receive your EPC report with efficiency rating and recommendations.
Consequences of Non-Compliance
Failing to provide a valid EPC when required can result in:
Fines of up to £5,000
Difficulty selling or leasing the property
Legal action by trading standards authorities
In London, commercial property owners must navigate strict EPC and MEES regulations to remain compliant. An up-to-date EPC not only avoids penalties but also enhances your property’s value, reduces long-term operating costs, and supports environmental goals.
If you own or manage a commercial property in London, now is the time to review your EPC status and take steps to improve it if needed.
