If your shop, office or unit has an EPC rating of E, the short answer is yes: you can let it. E is the legal minimum. But it is the minimum, and a unit sitting exactly on it has no room for the rating to slip. This page explains both halves.
Yes, E is lettable today
Privately rented non-domestic property in England and Wales must be rated E or better. That has applied to new tenancies since 1 April 2018 and to every existing let since 1 April 2023. A unit rated E on a valid certificate meets the standard.
"Valid" matters. An EPC lasts 10 years. If your E certificate has expired, you need a new one before you next market the unit, and the new one must also show E or better. See what an expired commercial EPC means.
What the Government intends for smaller buildings
In June 2026 the Government set out its plans for the non-domestic rented sector. For smaller buildings it said: "the intention is for buildings below 1,000 square metres to continue to be subject to the current minimum standard of EPC E".
Two things to take from that:
- It is an intention, not a change in the law, and the law today is already E.
- It refers to buildings. If your unit is part of a larger building, check how your building is treated before assuming this applies to you. Whether size will be measured per building or per let unit has not been published yet; check when the regulations appear.
For most small shops, offices and workshops, E remains the line to plan around.
Why E is a thin margin
A unit on E is one band away from being unlettable without an exemption. Several ordinary events can move it:
- A new certificate. Your next EPC is a fresh assessment. The national calculation methodology behind non-domestic EPCs changed on 15 June 2022, so a unit rated before then may come back higher or lower. In the register, electrically heated buildings assessed after that date are rated markedly better than before it; gas-heated ones are not.
- Changes to the unit. Changes to heating, lighting or the fabric may show up in the rating at the next assessment, in either direction.
If the next certificate shows F or G, you would need to improve the unit or register an exemption before letting it. Letting below E without one for three months or more can cost the greater of £10,000 or 20% of rateable value, capped at £150,000, plus a publication penalty. See MEES penalties for commercial property.
When you will next need a certificate
Work out the date your current EPC expires (10 years from lodgement) and set it against your lease events:
- Lease ending or break coming up? You will need a valid certificate to re-let.
- Renewal or extension coming up? The minimum standard applies to extending or renewing a tenancy, so the unit must meet E at that point. If the certificate has expired or is close to it, get a new one first.
- Selling? A valid EPC must be made available to buyers too. Failing to do so can lead to a fine of £500 to £5,000.
Improve now or wait?
There is no single answer, but these questions help:
- Is a vacancy coming? Works are usually easier between tenants than around one.
- What would move it? Your EPC's recommendations are a starting point. An assessor can tell you which measures would lift the rating to D or better, and roughly in what order.
- How old is the certificate? If it predates June 2022, a new assessment first may change the picture before you spend anything.
- What does the lease say? Access for works, and who pays, are lease questions.
None of this needs doing urgently if the certificate is valid and shows E. It is about not being surprised the next time a certificate is needed.
How many units are on E
On our count from the Energy Performance of Buildings Register (load dated 1 October 2026), 48,992 let units of up to 1,000 m² in England and Wales sit exactly on E: lettable today, with no margin. That compares with 4,465 rated F or G on a valid certificate.
"Let" means at least one certificate for the unit was lodged for letting. That is evidence of letting, not a count of every let unit. See how we count, and find your council's figures under every area.
In short
- E is the legal minimum, so an E-rated unit can be let today, on a valid certificate.
- The Government intends E to stay the minimum for buildings below 1,000 m².
- E leaves no margin: the next certificate decides whether you can keep letting without works or an exemption.
Sources
- Non-domestic private rented property: minimum energy efficiency standard, landlord guidance, GOV.UK, updated 5 May 2026. Checked 30 September 2026.
- Minimum Energy Efficiency Standards (MEES) in the non-domestic Private Rented Sector: interim response, GOV.UK, 18 June 2026. Checked 30 September 2026.
- Energy Performance Certificates for your business premises, GOV.UK. Checked 30 September 2026.
- The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015, regulation 41. Checked 30 September 2026.
Checked against GOV.UK and the regulations on 2026-10-06. More help