BPF urges Goverment to clarify EPC targets for commercial buildings

The British Property Federation has raised concerns over potential setbacks in the UK’s net zero target if the Government do not set out clear EPC targets for commercial buildings

With more than two years of waiting, commercial property owners seek immediate clarification from the government on new EPC targets for the sector.

The BPF has highlighted how this uncertainty is obstructing crucial investment and impeding the industry’s journey toward achieving net zero emissions.

The BPF is calling on the Government to publish a response to the 2021 consultation on new minimum energy efficiency standards (MEES) for commercial property owners.

The delay in publishing this response has already made the proposed interim milestone of EPC C by 2027 unrealistic, and additional delay risks undermining work to deliver the longer-term target of EPC B by 2030.

87% of office stock has an EPC rating of C or below

Research from Savills has highlighted that 87% of office stock has an EPC rating of C or below, and more than 1bn sq. ft. across the UK is below the proposed minimum EPC B.

Alongside setting new EPC targets, BPF is calling for clarity on the introduction of a performance-based rating scheme for large commercial and industrial buildings.

What does the Government response on EPC targets need to cover?

• Confirm the timelines for new minimum energy efficiency standards
• Provide clarity on the rules around exemptions and enforcement
• Provide information on the split of responsibilities between owners and occupiers
• Confirm payback arrangements and the obligations associated with listed buildings.

Commercial real estate accounts for more than 10% of all greenhouse gas emissions from buildings

Rob Wall, assistant director of the BPF, said: “It is more than two years since the consultation closed, and commercial landlords are still in the dark over exactly what the new standards will be and how new regulations will be implemented and enforced.

“We hear repeatedly from commercial property owners that the lack of regulatory certainty is one of the biggest barriers to decarbonising buildings.

“The uncertainty over future MEES regulations is part of this and is holding back investment into energy efficiency measures and undermining efforts to make our buildings greener and cleaner.”