EPC B by 2031: What Commercial Landlords Need to Know

EPC B by 2031: What Commercial Landlords Need to Know

Last updated 8 October 2026. General guidance, not legal advice.

On 18 June 2026 the government confirmed that rented commercial buildings over 1,000 m² must reach EPC B by 2031, where the works are cost-effective. It is not law yet. The regulations still have to go through Parliament, and a full government response is expected later in 2026. Until then, the current minimum of EPC E applies.

What is confirmed

• Over 1,000 m²: EPC B by 2031, where cost-effective
• Under 1,000 m²: stays at EPC E, with no date set for a higher standard
• The proposed 2027 EPC C milestone has been dropped
• The 7-year payback test stays, and so do the existing exemptions
• The rules cover privately rented commercial property in England and Wales

Still to be decided

• How the 1,000 m² is measured: per building or per let unit
• How the rules will be enforced
• Buildings let as shell and core
• Duties on tenants

What it costs to get it wrong

• Letting below the minimum standard for less than 3 months: £5,000 or 10% of rateable value, whichever is higher, up to £50,000
• Letting below the minimum standard for 3 months or more: £10,000 or 20% of rateable value, whichever is higher, up to £150,000
• No valid EPC when selling or letting: £500 to £5,000, based on rateable value

Landlords in breach can also be named on the public exemptions register.

Under 1,000 m²?

There is no legal requirement to reach B. It can still pay: tenants, lenders and investors increasingly ask for better ratings, and a better-rated building costs less to run.

The 7-year payback test

You only have to carry out improvements that pay for themselves within seven years. If B cannot be reached that way, you can register an exemption, but you need the evidence. Our report gives you the lowest-cost route to B, or the evidence for the exemption.

Landlord or tenant?

The landlord is responsible under MEES. The lease decides who pays for the works and how access is arranged. A tenant who sublets becomes a landlord under the rules.

What moves the rating

• Lighting and HVAC. Usually the fastest and lowest-cost gains: LED lighting and controls, efficient heating and cooling, and ventilation with heat recovery.
• Fabric. Roof insulation is usually the most cost-effective fabric upgrade, then wall insulation and better glazing. Documented evidence of existing insulation can improve the rating on its own.
• Renewables. Heat pumps are often the biggest single improvement. Solar PV suits large, unshaded roofs. Both work best once lighting, controls and plant have cut demand.

Every building is different, so we model each option in SBEM before you spend anything.

What to do now

1. Check your current EPC rating and when it expires. An EPC lasts 10 years.
2. Check the floor area of each building you let.
3. Get an EPC B plan before your next lease event, fit-out or plant replacement, when upgrades cost least.

How we help

1. Existing building. We survey and model the building as it stands, to confirm the true rating.
2. Proposed upgrades. A second SBEM model with our recommended upgrades, showing the rating they reach.
3. Cost breakdown. Each improvement with an indicative cost.
4. Payback. How long each measure takes to pay back, and exemption evidence where it does not.
5. Planning and Building Regulations check before you commit to works.

After the works we lodge a new EPC to confirm the rating. Prices start from £700+VAT. Turnaround: 5 working days once we have everything we need.

Questions we get asked

Is EPC B by 2031 already law? Not yet. The government confirmed the policy on 18 June 2026. The regulations still have to go through Parliament, and the current minimum of EPC E applies until then.

What if reaching EPC B is not cost-effective? You only have to carry out works that pay back within seven years. If B cannot be reached that way, you can register an exemption with the right evidence. Our report gives you either the route or the evidence.

Do I need a new EPC after the works? Yes. Once the works are done we lodge a new EPC to confirm the improved rating.

More: EPC B upgrade plans, commercial EPCs, SBEM calculations, TM44 inspections

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