The Department for Energy Security and Net Zero has finally announced that landlords of non-domestic rented buildings will probably have to start undertaking energy efficiency improvements by 2028.

During Elmhurst’s conference, it revealed that while its consultation – launched back in 2019 – had originally suggested that landlords would need to get to an EPC B by 2030, with an interim milestone of EPC C by 2027, the long delay meant it was “considering postponing the deadline for example by one year”.

It says in this scenario; it would require all landlords of non-domestic rented buildings below EPC band B to undertake cost-effective energy efficiency improvements by 2031. And it reckons that an EPC B target will capture up to 85% of the private rented non-domestic building stock compared with 54% if the target was EPC C.

I’m sure this news will come as a big relief to many in the sector, which has been stymied by successive governments’ grinding indecision to implement phase 2 of Non-Domestic MEES. This has knocked investors’ confidence and left everyone in limbo, recently impacting on non-domestic EPC lodgements. It’s meant only those companies beholden to shareholders with access to funding through investors have been forging ahead with energy efficiency plans, leaving those without the force of a legislative ‘stick’ deciding not to bother.

I’m convinced that if the government follows through on this new announcement, we’ll see an immediate upsurge in interest and activity from landlords keen to go green. There will also be the knock-on effect of manufacturers being encouraged to invest in R&D and for companies to invest in training new and existing staff to fill the increasing number of roles in the burgeoning green economy. And of course, improving EPC ratings will reduce carbon emissions, improve the comfort for tenants, and increase buildings’ asset value.

DESNZ’s policy document, due to be published in the Spring, promises to provide more detail. Let’s just hope they finish what they’ve started!