The current rule
Since April 2023 it has been unlawful to continue to let a non-domestic property in England and Wales with an EPC rating below E, unless an exemption is registered. This applies to existing leases, not just new ones. Scotland has its own regime with different triggers.
What is coming
Government has consulted on raising the minimum for let commercial property to C and then B over the coming years, with interim compliance dates. The final timetable has moved more than once; treat anything below C as a property that will need investment during the life of a mortgage.
What lenders do
- Ask for the EPC with the application.
- Decline, or lend at lower LTV, on F and G rated property unless there is a costed improvement plan or a valid exemption.
- Some now price D and E rated property slightly higher or add a covenant requiring improvement.
- Owner-occupied property is not subject to the letting rule, but lenders still look at it for saleability.
If the property is F or G
- Get a full assessment with recommendations, not just the certificate.
- Cost the improvements (lighting, heating controls, insulation, glazing) and the resulting rating.
- Check whether an exemption applies (the seven-year payback test, listed buildings, consent refused).
- Build the works into the purchase: a lower price, a retention, or bridging to do the works then a term loan on the improved rating.
Why it matters beyond the rules
Tenants increasingly want efficient buildings; a poor rating shortens the list of occupiers and weighs on rent and value. Lenders know this, which is why the EPC now sits next to the lease in their file.
A note on the numbers. Rates, loan-to-value limits, fees and criteria are typical figures at the time of writing (2026). Commercial lending is priced case by case, so your own terms depend on the property, the business, the tenant and you. This is information, not advice, and not an offer of finance.
Quick answers
Does the EPC rule apply to a property my own business occupies?
The letting prohibition does not, but a lender will still look at the rating for saleability, and if you ever let it the rule applies.
How long does an EPC last?
Ten years. A certificate from 2016 issued under older methodology may rate differently if reassessed; lenders sometimes ask for a fresh one.
Ready to talk to someone who can actually arrange it?
Tell us about the property and the business, and a commercial finance adviser will come back with which lenders fit, what rate to expect and what they'll want to see. No fee for the conversation, no obligation.