EPC B by 2031 for larger rented business premises: what the new Energy Bill means for you

If your business rents a large warehouse, factory or office, or you let one out, this one is worth five minutes. Alongside the Energy Independence Bill introduced on 4th November 2026, the government confirmed it intends to require an EPC B rating by 2031 for privately rented commercial buildings in England and Wales over 1,000 square metres.

What has actually been said

The factsheet on commercial energy efficiency rules and the earlier interim response of 18th June 2026 set out the plan:

• From 2031, rented buildings over 1,000 square metres would need EPC B, where it is cost effective.
• Smaller buildings stay at today's minimum of EPC E.
• The old idea of an EPC C step in 2027 has been dropped.
• The 7-year payback test and existing exemptions stay, so only practical, affordable improvements should be required.
• The Bill gives councils clearer inspection powers and creates a compliance database, so the rules are more likely to be enforced.

The EPC B change itself still needs secondary legislation, so it isn't law yet. But the direction is now clear.

What it means for you

2031 sounds a long way off, but leases, refits and investment plans are often set years ahead. If you rent a big unit, a poor EPC could affect your next lease negotiation, your landlord's plans or your service charge. If you own and let one, it could affect whether you can keep letting it.

The good news is that the measures that lift an EPC, such as LED lighting, better controls, insulation and rooftop solar, also cut running costs now.

A sensible first step is simply to check your current EPC rating and when it expires. If you'd like help understanding what it would take to reach B, and what it might save along the way, I'm happy to have a quick, no-obligation chat.