A new study from the British Property Federation (BPF) revealed that most commercial buildings in key UK cities fall short of the government’s energy efficiency expectations. In a survey covering real estate in London, Manchester, Bristol, Leeds, and other major cities, 83% of commercial properties had an energy performance certificate (EPC) rating below B.
With stringent regulations looming, commercial building owners face rising costs and limited government guidance. The BPF’s analysis points to a significant gap, with only 17% of properties in cities like Manchester and London achieving the required EPC rating of A or B. The current rules, which set a target of EPC B by 2030, require an ambitious increase in retrofitting to meet the standards across millions of square feet of commercial space.
For example, while 20% of commercial buildings meet the minimum EPC B in Manchester, over 10 million square feet still need to be upgraded to meet the 2030 deadline. Nationwide, this translates to the need for 94,595 square metres of space to be upgraded daily over the next five years.
However, the BPF is critical of the government’s lack of response to consultations that addressed these issues. They argue that the proposed interim targets—EPC C by 2027—are now unrealistic, and without more explicit guidance from the government, property owners are left in limbo.
Rob Wall of the BPF stressed that the commercial real estate sector is committed to improving energy efficiency but requires clearer rules on compliance, exemptions, and enforcement. He added that the slow pace of progress could delay meeting the EPC B target unless the government offers immediate clarity on the path forward.
