FAQs: Non-domestic private rented property: minimum energy efficiency standards for commercial property

The Law Commission’s latest proposals aim to make business tenancy renewals clearer, quicker, and better suited to the modern commercial property market. While we welcome most of the proposed changes, we have highlighted important caveats where caution is needed to prevent a rise in disputes and to ensure that all parties have adequate protections.

The Future Homes and Buildings Standards will introduce new minimum requirements for energy efficiency, low-carbon heating and renewable electricity in new homes and non-domestic buildings in England. For property professionals, the changes will affect the homes coming to market, the systems buyers and tenants need to understand, and the information agents may need to provide about heating, ventilation, solar panels and energy performance.

Commercial property agents handling telecommunications sites in England and Wales should note a change to where disputes under the Landlord and Tenant Act 1954 are decided. From 30 July 2026, certain disputes fall within the jurisdiction of the First-tier Tribunal and Upper Tribunal, rather than the courts.

From 2031, privately rented non-domestic buildings over 1,000 sqm in England and Wales will be expected to meet EPC B, where it is cost-effective. Buildings below 1,000 sqm are expected to remain as the current minimum EPC E. The Department for Energy Security and Net Zero (DENZ) has stated the changes will only take effect after Parliament has passed secondary legislation.