Over 130,000 commercial properties at risk due to 2027 EPC Regulations
With the 2027 deadline fast approaching for stricter Energy Performance Certificate (EPC) regulations, an estimated 130,000 commercial properties in the UK could become unlettable unless energy efficiency improvements are made.
Essential Green Skills, a leader in sustainable building compliance, is calling on landlords and developers to take immediate action to avoid potential fines and asset devaluation.
The new regulations, set to take effect in 2027, will require all commercial properties to have an EPC rating of C or higher to be legally rented or sold. With a large proportion of the current commercial building stock rated D or below, the impending changes pose a serious risk to property owners who fail to meet the new standards.
Energy Expert Ryan Cancellara on the Importance of Immediate Action: “Landlords and developers need to realise the urgency of this situation,” says Ryan Cancellara, Energy Expert at Essential Green Skills. “With approximately 28% of commercial properties still rated D or below, many owners are sitting on assets that could soon become obsolete. These properties won’t just face fines; they could lose significant market value as they will be unlettable under the new regulations.”
Cancellara further explains, “It’s not just about meeting compliance. Tenants are increasingly prioritising energy efficiency, and properties with higher EPC ratings are becoming more attractive to renters. Upgrading a building’s energy efficiency is not just about avoiding penalties – it’s a way to future-proof your asset and potentially increase its market value.”
Financial and Environmental Impact
Landlords who fail to comply with the 2027 regulations risk fines of up to £150,000 depending on the rateable value of the building. However, the long-term impact could be far greater, with significant operational disruptions as properties require retrofitting, or in the worst case, become impossible to let.
"Energy efficiency improvements, such as better insulation, upgrading HVAC systems, and investing in renewable energy solutions, are not just compliance measures; they are smart investments," Cancellara adds. "The return on investment is twofold – landlords reduce their carbon footprint and attract higher-quality tenants who prioritise sustainability."
Supporting Landlords and Developers
Essential Green Skills offers comprehensive Commercial EPC assessments and energy efficiency advisory services to help landlords and developers meet the new standards. The company is equipped to guide property owners through the process of upgrading their buildings, ensuring compliance with the 2027 regulations while improving energy efficiency and sustainability.
“As we move closer to the 2027 deadline, the clock is ticking for landlords to take action,” Cancellara advises. “We urge property owners to start the process now to avoid rushed compliance work closer to the deadline, which could lead to higher costs and disruptions.”