UK’s Retrofit challenge exposed by new research

New research from the British Property Federation (BPF) highlights the significant retrofit challenge facing commercial buildings across major UK cities. The study shows that only 2% of commercial properties in London, Birmingham, Bristol, Leeds, Liverpool, Manchester and Newcastle currently achieve an EPC A rating, while just 15% reach EPC B. This means that 83% of UK commercial buildings are operating below the energy‑efficiency standard businesses will soon be expected to meet.

Under the government’s proposed minimum EPC requirements for commercial buildings, properties should reach EPC C by 2027 and EPC B by 2030. However, based on the BPF’s analysis, hitting those targets would require upgrading around 94,595 square metres of commercial space every single day for the next five years — a near‑impossible pace without immediate action. Rob Wall, assistant director at the BPF, warns that commercial and industrial buildings account for roughly a third of all building‑related carbon emissions in the UK. Improving energy efficiency through retrofitting is therefore essential for meeting national climate goals. But progress is being slowed by a lack of clarity from the government on future minimum energy efficiency standards, leaving property owners, landlords and investors unsure how to plan their upgrades.

Although EPC ratings are improving gradually across the commercial sector, the pace of change remains too slow to meet the proposed deadlines. Wall argues that the interim EPC C target for 2027 should now be reconsidered, as the timeline appears unrealistic without clearer guidance and stronger policy support.

The message is clear: large‑scale commercial retrofitting will be crucial for the UK to reach EPC B by the early 2030s. Property owners need certainty to invest confidently, and the government must provide the direction required to keep the country’s commercial real estate on track.