2nd December 2025
Energy Performance in the Spotlight: What’s Next for EPC Ratings?
Energy Performance in the Spotlight: What’s Next for EPC Ratings?
Energy Performance Certificates (EPCs) are central to the UK’s Net Zero strategy, with strengthening of the regulations anticipated in the short-to-medium term. If you own or lease commercial property, understanding what’s coming could save you time, money, and stress
What is an EPC and Why Does It Matter?
An EPC measures how energy-efficient a building is, rated from A (most efficient) to G (least efficient). For commercial properties, EPC ratings affect:
- Legal compliance under Minimum Energy Efficiency Standards (MEES)
- Tenant demand – sustainability is now a priority
- Investment decisions – poor ratings can reduce property value
Watch: What Lies Ahead for EPC Ratings?
What Changes Are Expected?
The built environment is a significant contributor of carbon emissions. According to the RICS Sustainability Report for 2024, the built environment accounts for almost 40% of global carbon emissions. The UK Government plans to tighten EPC rules to help meet Net Zero targets. There are plans to make EPCs more accurate and reflective of real-word energy use, strengthening their role in investment decisions, and climate action. Here’s what’s being discussed:
- More accurate EPC assessments reflecting real-world energy use
- Higher minimum standards*:
- EPC C by 2027
- EPC B by 2030
- Impact of past changes: Updates in 2022 shifted how gas vs. electricity is assessed, causing some ratings to drop without physical changes.
*The timeline of implementation will in part depend on the date that any relevant legislation is passed.
Why Does This Matter for Landlords?
Owners or commercial spaces and industrial buildings will need to not only consider the changes that may be necessary to keep compliant, but also will need to understand how the environmental credentials of property will be scrutinised by tenants, funders and purchasers – many of which are prioritising sustainability to avoid any perceived disruption of later upgrades. EPC ratings are also important in ESG reporting, which is needed for compliance, to encourage investor interest, and improve tenant appeal.
If your property is near the threshold, it could be downgraded under new rules. For example:
- A current C rating might fall to D, triggering costly upgrades.
- Gas heating systems installed after 2022 may now count against you, as systems working with electricity are now viewed more favourably.
Here are some action points for landlords:
- Audit your portfolio now – identify properties at risk.
- Work with EPC assessors and Chartered Building Surveyors to align improvements with compliance.
- Plan upgrades early – insulation, low-carbon heating, smart energy systems.
What About Tenants?
Tenants could face disruption if their leased property fails to meet new standards. This might mean:
- Relocation or renegotiation of lease terms
- Unexpected costs if compliance falls under tenant obligations
Tenant checklist:
- Review your lease for EPC responsibilities
- Engage landlords early about planned upgrades
- Factor EPC ratings into new lease decisions
Key Takeaways
- EPC reforms are anticipated in the short-to-medium term
- Landlords: start planning upgrades now to avoid penalties and protect asset value.
- Tenants: stay informed and proactive to avoid business disruption.
- Both parties should collaborate with EPC experts and surveyors for a smooth transition.
