Understanding the 2025 EPC Regulations for Landlords
April 2025 brought a change to commercial property industry in terms of new regulations for Energy Performance Certificates (EPC). Commercial buildings, whether under new or existing leases are now legally required to hold a valid EPC with a minimum rating of E. Previously, this was only required for new leases.
Key Changes to EPC Requirements Coming in 2025
- Properties rated below E can not legally be let, including those with ongoing leases.
- Local authorities now have enhanced powers to inspect properties and issue fines for non-compliance with fines ranging between £5,000 to £150,000.
- The government has aims of progressively rising the EPC standards with a view for all commercial buildings to achieve Band C by 2027 and Band B by 2030.
EPCs have evolved beyond a simple compliance requirement as they now play a key role in influencing tenant demand, asset value, and access to finance, as sustainability and carbon reduction targets increasingly shape property policy.
Even properties without current lease activity must hold a valid EPC. Certain exemptions apply; for example, listed buildings, places of worship, or properties that do not meet the seven-year payback test. These exemptions must be formally registered to be valid.
What’s the 7 year EPC test?
The ‘7-year test’ determines whether energy efficiency improvements are considered cost-effective. If the expected savings on energy bills over a seven-year period are equal to or greater than the cost of carrying out the works, the improvement is deemed financially viable and therefore required to meet EPC compliance.
What do landlords need to do?
Landlords must prepare for future recommended actions would be to:
- Conduct a full review of your property portfolio and asses the current EPCs viability.
- Plan ahead energy efficient upgrades such as improvements to lighting, insulation, HVAC systems and glazing to improve ratings.
- Consider renewable installations such as solar panels or other renewable solutions that can future proof assets and improve energy performance.
Maintaining EPC compliance is essential not only to avoid fines but to protect long-term property value and remain competitive in an increasingly sustainability-driven market. At Vickery Holman, our Building Surveyors and Valuers can help you understand your EPC position, identify cost-effective improvements, and future-proof your assets ahead of the 2025 regulations.
