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Energy

EPC B by 2031: what the new commercial energy standard means and how to meet it

5 min read

From 2031, privately rented commercial buildings in England and Wales over 1,000 square metres must reach an EPC rating of B, where cost effective, under the Minimum Energy Efficiency Standard. Up to 60 percent of commercial buildings sit below that today, so the practical task is to start improving whole-building energy performance now, on a plan that meets the deadline without wasted spend.

What exactly did the government confirm about EPC B and 2031?

The government's 2026 interim response on non-domestic minimum energy efficiency standards confirmed EPC B as the required rating from 2031 for privately rented commercial buildings over 1,000 square metres, where cost effective. It also dropped the previously proposed interim EPC C milestone for 2027, which extends the runway but removes any doubt about the destination.

In short, the deadline is later than some feared, but the standard is fixed and the trajectory is clear.

Who is affected, and what is the cost of missing it?

The standard bites on landlords, because a building below the required rating cannot be lawfully let, which turns an energy problem into a voids-and-value problem. Up to 60 percent of UK commercial buildings currently sit below EPC B, and independent research suggests the sector is on track to miss the 2030 target, with full compliance not projected until around 2040.

That gap is the risk: assets that are not improved in time become harder to let, harder to finance, and worth less.

How do you reach EPC B without overspending?

The goal is not a certificate, it is a building that genuinely uses less energy, which is what protects its value and meets your net zero commitments at the same time. The outcome we deliver is improved energy performance across a whole estate, planned as one programme rather than a scramble of disconnected upgrades, so spend is phased and targeted where it moves the rating and the bill most.

  • Obligation: each asset brought to the required standard, so space stays lettable and ESG and net zero targets advance together.
  • Cost: lower energy bills from the same works that lift the rating, with capital deployed efficiently over the runway to 2031 rather than in a costly last-minute rush.
  • Risk: asset value and lettability protected, with no stranded space when the deadline lands.

What should a landlord or estates director do first?

Begin with an estate-wide view of where each building stands against EPC B and what it will take to close the gap. An energy assessment mapped to the 2031 standard turns a vague obligation into a costed, prioritised plan, so the early spend goes to the assets most exposed.

Questions answered

Frequently asked

When do commercial buildings need to reach EPC B?

From 2031, privately rented commercial buildings in England and Wales over 1,000 square metres must reach an EPC rating of B, where cost effective.

What happened to the EPC C 2027 target?

The government's 2026 interim response dropped the previously proposed interim EPC C milestone, leaving EPC B by 2031 as the confirmed standard.

What happens if a commercial building misses EPC B?

A building below the required rating cannot be lawfully let, creating voids, financing difficulty and loss of asset value.

How much of the commercial stock is below EPC B?

Up to 60 percent of UK commercial buildings currently sit below EPC Band B.

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