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

Upward-only rent reviews will be outlawed in new leases across England and Wales under the English Devolution and Community Empowerment Bill. Concerns have been raised by the sector about how this move could affect property values and investor confidence. Plus, a shift of this magnitude requires careful implementation to prevent unintended consequences for future development and commercial supply.

Propertymark has welcomed Ofgem’s proposals to improve transparency and implement fair pricing protections for heat network customers, but warns that implementation must consider the operational realities of managing agents and ensure true consumer fairness.

Propertymark’s response to the Department for Energy Security and Net Zero (DESNZ) consultation sets out a clear and urgent case for reform of the scheme, which provides financial support for households in England and Wales to install low-carbon heating systems like heat pumps or biomass boilers. A more ambitious scope is needed to help overcome the barriers landlords face in meeting the UK Government’s energy efficiency ambitions — especially the proposed Minimum Energy Efficiency Standard (MEES) of EPC C for new tenancies by 2028.

The Propertymark Commercial Outlook Q1 2025 reveals a resilient commercial property sector navigating economic uncertainty with cautious optimism. While inflation remains above target and lending challenges persist, strong confidence continues in the Industrial and Class E sectors.