EPC B-rating deadline for large non-domestic rented buildings to be pushed back to 2031: What does this mean in practice?

Non-domestic building energy efficiency standard timelines have long been subject to be confirmed, but policy uncertainty has made road-mapping challenging for businesses and landlords alike.

The government has now brought some clarity to an undecided regulatory landscape with an interim consultation response.

Here’s what the latest guidance means in practice.

What is the context?

Following a 2019 consultation, the 2020 Energy White Paper confirmed that the future trajectory for the non-domestic minimum energy efficiency standards (MEES) will be EPC B by 2030.

This announcement was followed with a second consultation in 2021 to explore the more in-depth issues around implementation, enforcement and delivery of EPC B.

On 18 June 2026, the Department for Energy Security and Net Zero published an interim update in response to these consultations.

What is the latest?

The government has confirmed its intention to implement the following:

• From 2031, it is proposed that all private rented buildings over 1,000 square metres in England and Wales will need to reach EPC rating of B “where cost effective.” This change will only take effect following the successful passage of secondary legislation through Parliament.
• The previously proposed interim EPC rating of C by 2027 milestone will not be taken forward.
• Buildings below 1,000 square metres are to continue to the current minimum standard of EPC E, with no set deadline for going beyond this level.
• Existing flexibility mechanisms, including the 7-year payback test and exemptions, will remain in place.

What happens next?

Further detail on these proposals and implementation of the threshold will be set out in a forthcoming government consultation response.

The government aims to introduce legislation and updated guidance at the earliest opportunity.

What does this mean for me?

After years of uncertainty around non-domestic minimum energy efficiency standards, this announcement is a welcome development, but questions remain as practicalities are yet to be confirmed.

MEES has long presented a complex regulatory backdrop, and no two businesses are at the same point in their energy efficiency journey.

While moving the EPC B deadline back a year to 2031 offers some breathing room, some properties could face a multi-band climb rather than an incremental one rung up.

Buildings larger than 1,000 square metres

The extended timeline is not an invitation to wait. With details such as the definition of ‘cost effective’ yet to be confirmed, the scale of improvement required could be considerable and businesses that delay could face a far steeper climb as the renewed deadline approaches.

Buildings below 1,000 square metres

Although there is no approaching compliance deadline to adhere to, energy efficiency improvements can deliver real value – reducing your consumption and energy costs in turn.

How can Inspired help?

Whether you are mapping out the current energy performance in your portfolio or planning your route to EPC B, Inspired’s experts can support you at every stage.

Beyond site surveys and certifications where our dedicated building compliance team can save you time and money with a simplified compliance process, our optimisation experts can help you act on the recommendations to improve building energy efficiency, reduce your carbon footprint and unlock savings.

Besides Energy Performance Certificates, we can also support you with other aspects of your building compliance, such as Display Energy Certificates and Air Conditioning Inspection Reports.