Energy Efficiency Rules Could Make 80 Percent of Commercial Properties Unlettable by 2030

More than 80 per cent of commercial properties across England face becoming unlettable by 2030 without substantial investment, as landlords issue stark warnings about the government’s “unrealistic” sustainability targets for the sector.

The proposed regulations, stemming from a 2021 consultation, would mandate all commercial properties to achieve an energy performance certificate (EPC) rating of A or B by 2030 to be legally let. Current data reveals a concerning picture, with 83 per cent of commercial properties in major English cities holding an EPC rating of C or below.

Research from the British Property Federation (BPF) indicates that Manchester leads the pack among major cities, yet only 20 per cent of its commercial buildings meet the proposed B threshold. London follows closely with 19 per cent compliance, whilst Bristol and Birmingham lag behind with 85 per cent of properties requiring significant upgrades.

The property sector faces mounting challenges beyond the statistical hurdles. Industry experts highlight a critical shortage of skilled tradespeople to execute necessary retrofitting works, whilst landlords grapple with financing uncertainties. The government’s delayed response to the 2021 consultation has further complicated investment decisions.

Rob Wall, assistant director at the BPF, emphasises the sector’s commitment to tackling climate change but argues the proposed timeline is increasingly unrealistic. The federation advocates abandoning the interim EPC C target for 2027, suggesting a more pragmatic approach to achieving environmental goals.

The Department for Energy Security and Net Zero maintains that exemptions exist for landlords, ensuring measures remain “fair and proportionate.” However, with the clock ticking and billions in potential investments required, the commercial property sector faces unprecedented pressure to adapt to these environmental standards.