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.

The commercial property sector continues to play extreme strategic relevance across the entire of the UK, often taking the lead on shaping the success of communities by accurately provisioning to both current and future needs.

The English Devolution and Community Empowerment Act 2026 includes measures to prohibit upward-only rent reviews in new business leases in England and Wales. Propertymark supports measures that help businesses access suitable premises and contribute to stronger high streets. However, changes to commercial lease structures must also maintain confidence for landlords and investors who fund, maintain, and improve commercial property.

The UK Government has published draft regulations introducing a new disclosure regime for land agreements that give control over development without transferring ownership. The rules, which will apply in England and Wales, stem from the Levelling-up and Regeneration Act 2023 and are expected to come into force on 6 April 2027.

For over two million non-domestic properties across England, new rateable values have come into effect from 1 April 2026, marking the start of the latest three-year business rates cycle that will run until March 2029 and is expected to have significant implications for commercial property agents, landlords, and tenants navigating changing market conditions.

Latest insights reveal the sector is showing growing resilience, with easing inflation, a lower base rate, and rising rents helping to rebuild confidence despite ongoing structural challenges. Shifting consumer behaviour, targeted regeneration, and smarter use of data and technology are set to define the next phase of commercial property growth.

The UK Government has announced long-term investment packages for new and expanded Mayoral Combined Authorities (MCAs), with a clear focus on unlocking housing delivery and revitalising high streets. These agreements will give local leaders devolved powers and funding settlements to drive regeneration, build new homes, and support economic growth.

Stability is returning to the UK commercial property market as stats and sentiment reveal steady base rates, easing inflation, and renewed confidence across industrial and office sectors.

The Northern Ireland Dilapidation Bill aims to modernise and consolidate the rules which equip local authorities to tackle run-down, dangerous, or dilapidated buildings and land. It creates a single toolkit to support earlier action to protect amenities, aid regeneration, and keep people safe. The overall direction of the legislation is sound, and Propertymark is engaging with Ministers and MLAs to make improvements so that it will work better in practice.

The second quarter of 2025 shows the commercial property sector is balancing short-term challenges with long-term opportunities, as agents report shifting confidence across sectors.

Reforms announced are going to make it easier and cheaper for empty commercial units to be turned into hospitality venues will be introduced to support efforts to boost footfall and revitalise town centres.

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.

Q1 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.

The Act, now over 70 years old, gives business tenants a legal right to renew their leases in many circumstances — a framework that has faced growing criticism for being outdated and overly complex. Propertymark responded to the consultation, advocating for modernisation of the legislation to reflect the current needs of businesses. These initial recommendations come as part of a wider review focusing on how well the law is functioning for commercial property leases.

Propertymark’s response to the Ministry for Housing, Communities and Local Government (MHCLG) consultation on reforms to the Energy Performance of Buildings (EPB) regime addresses the wide-ranging proposals, covering changes to Energy Performance Certificates (EPCs), Display Energy Certificates (DECs), and Air Conditioning Inspection Reports (ACIRs). We welcome many of the proposed reforms but have also raised concerns, especially around commercial and heritage buildings and HMOs, and made recommendations to ensure the final policy is fair, practical, and effective.

Recent research from Search Acumen indicates that the commercial property sector is on track to miss the UK Government's 2030 Minimum Energy Efficiency Standards (MEES) target, with full compliance projected only by 2040. Around half of all energy consumed in commercial and industrial buildings in England and Wales is in the rented sector, placing the onus on landlords to make energy efficiency and heating improvements.