The EPC time bomb: What commercial landlords in Leeds must do before 2027

4 in 5 commercial buildings in Leeds don’t meet the EPC B standard. By 2027, anything below C could be unlettable. By 2030, the bar rises to B. For Leeds landlords, the time to act is now.

That’s why we’ve put together this no-jargon guide for Leeds landlords. It includes the deadlines, the consequences of inaction and the steps you need to take.

What are MEES, and why do they matter now?

The Minimum Energy Efficiency Standards (MEES) were introduced in the 2015 Energy Efficiency Regulations to improve energy efficiency in rented properties. Now the thresholds are evolving to require much more substantial changes and upgrades to drive towards the UK’s commitment to net-zero carbon emissions by 2050, as buildings account for 19% of the UK’s total carbon output.

In 2018, they required a minimum EPC rating of E for new commercial leases. Then, in April 2023, this requirement was extended to existing lettings, not just new ones. Now, the standards are tightening further, and from April 1st 2027, all leased commercial properties must achieve a minimum EPC rating of C, rising again to B by 2030.

These aren’t distant targets, the first compliance window is already open, and landlords are required to present a valid EPC ahead of each enforcement date.

The deadline timeline

The proposed MEES regulations are not yet fully confirmed in law, as the government’s formal response to its 2021 consultation is still outstanding. However, the direction of travel is clear and widely expected to be legislated. Waiting for final confirmation before acting is not a viable strategy.

Here’s where things stand:

It’s worth noting that EPCs are valid for 10 years, so if yours has expired or is nearing the end of its validity period, commissioning a new assessment should be your first step. This is particularly important if you have made improvements since the last assessment.

The 2027 and 2030 deadlines act as two separate compliance windows. On each enforcement date, landlords must demonstrate that their building has reached the required band or achieved the highest rating realistically achievable.

What this means for Leeds landlords

With the 2027 deadline approaching, the consequences of inaction are significant:

• Properties become unlettable – any commercial property rated Band C or lower cannot be legally let
• Financial penalties – fines of up to £50k for a breach under three months, rising to £150k over three months
• Asset devaluation – non-compliant buildings could end up facing the risk of lower market value
• Rent review challenges – poor energy performance makes rent harder to justify
• Rising costs the longer you wait – demand for contractors and energy accessories will likely rise as the deadline gets closer

How to improve your EPC rating

The good news is that most commercial buildings can move up at least one EPC band by addressing some focused improvements. The five areas that deliver the greatest uplift are:

• Lighting – Replacing fluorescent or halogen fittings with LED lighting, combined with sensors and daylight-responsive controls.
• HVAC – Heating, ventilation and air conditioning systems account for a large share of a building’s energy consumption. Upgrade to energy-efficient units and add programmable controls, such as smart thermostats.
• Building fabric – Improving roof, wall and floor insulation, and upgrading to double or triple glazing to reduce heat loss and lower heating and cooling system demand.
• Building management systems – Automating energy use across lighting, heating and cooling based on real-time occupancy data to reduce waste.
• Renewable energy – Installing solar PV, particularly on larger assets, to support long-term transitions.

Exemptions

There are exemptions to MEES compliance, but they are narrow and shouldn’t be treated as a planning strategy.

• Devaluation – Where required improvement works would reduce the property’s value by 5% or more, supported by an independent surveyor’s report.
• High cost – If the cost of installing even the cheapest measure exceeds £3.5k.
• Wall insulation – If the only relevant improvements are cavity, external or internal wall insulation, and you have obtained written expert advice showing these measures would negatively impact the structure.
• Third-party consent – If you require permission from another party, such as a tenant, superior landlord, mortgagee, freeholder or planning department that, despite best efforts, cannot be obtained, or is given subject to conditions you cannot reasonably comply with.
• Recent landlord – Recent landlords may not be expected to take immediate action to improve for 6 months from the date you became a landlord.
• All relevant improvements made – If your property remains below EPC E after improvements have been made up to the cost cap of £3,500 inc VAT, or if none can be made.

What you should do now

If you own or manage a commercial property in Leeds, here is what you should be doing now, and how Building Interiors can help you meet requirements:

Step 1 – Audit your portfolio

Establish the current EPC rating for every asset you own or manage, and check when each certificate expires.

Step 2 – Commission a new assessment (if needed)

If your EPC has expired or will soon be, or if you have made improvements since the last rating, commission a new one.

Step 3 – Identify the gap

Understand which properties fall below the EPC C rating, what the existing certificates recommend to improve, and what that investment may look like.

Step 4 – Get a compliance assessment

Work with Building Interiors or one of our recommended energy consultants to model the most cost-effective route to EPC C. If possible, plan for EPC B at the same time to future-proof against the 2030 deadline and avoid repeating this process and incurring additional costs.

Step 5 – Act early

Capacity will tighten the closer we get to the deadlines, so commissioning the work now means better pricing, more flexibility and less risk of falling short of the deadline. Building Interiors are committed to helping landlords reduce vacancy risk and quickly and effectively become compliant across their portfolio.

Ready to get your Leeds property EPC compliant?

Building Interiors specialises in commercial fit-outs that bring properties up to standard. Give one of our friendly team a call and quote EPC to discuss how we can help you meet the deadlines.