There’s a warning that over 130,000 commercial properties are ‘at risk’ due to 2027 EPC Regulations

With the 2027 deadline approaching for stricter Energy Performance Certificate (EPC) regulations, it’s claimed an estimated 130,000 commercial properties in the UK could become unlettable unless energy efficiency improvements are made. 

Essential Green Skills, a sustainable building compliance consultancy, is calling on landlords and developers to take immediate action to avoid potential fines and asset devaluation.

The new regulations 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 .

An Essential Green Skills spokesperson says: “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.

“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.”

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” the spokesperson adds. 

“The return on investment is twofold – landlords reduce their carbon footprint and attract higher-quality tenants who prioritise sustainability.

“As we move closer to the 2027 deadline, the clock is ticking for landlords to take action. 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.”