Letting a commercial unit rated F or G without a registered exemption has been unlawful for every let since 1 April 2023. The penalties are set out in regulation 41 of the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015. They are linked to the rateable value of the property and to how long the breach lasted.
The penalties at a glance
| Breach | Maximum financial penalty | Never more than |
|---|---|---|
| Let in breach for under three months | The greater of £5,000 or 10% of rateable value | £50,000 |
| Let in breach for three months or more | The greater of £10,000 or 20% of rateable value | £150,000 |
| False or misleading information on the PRS Exemptions Register | £5,000 | £5,000 |
Each of these can come with a publication penalty as well. Under regulation 39, that means publishing on the PRS Exemptions Register the landlord's name (where the landlord is not an individual), details of the breach, the property's address and the amount of any financial penalty, for at least 12 months. It does not take effect until the periods for review and appeal have run out.
Under three months
For a breach of under three months, the financial penalty can be up to whichever is greater: £5,000, or 10% of the property's rateable value, and never more than £50,000. These are maximums: an authority can impose less.
Three months or more
If the breach lasts three months or more, the financial penalty can be up to whichever is greater: £10,000, or 20% of rateable value, and never more than £150,000.
Worked examples
These show the maximum penalty the arithmetic allows, using made-up rateable values. They are not predictions of what any authority would charge.
A small shop with a rateable value of £15,000
- Under three months: 10% is £1,500, so the £5,000 floor applies. £5,000.
- Three months or more: 20% is £3,000, so the £10,000 floor applies. £10,000.
An office suite with a rateable value of £120,000
- Under three months: 10% is £12,000. £12,000.
- Three months or more: 20% is £24,000. £24,000.
A larger unit with a rateable value of £900,000
- Under three months: 10% is £90,000, above the cap. £50,000.
- Three months or more: 20% is £180,000, above the cap. £150,000.
For any unit with a rateable value of £50,000 or less, the £5,000 and £10,000 floors are the figures that apply, because 10% and 20% of £50,000 are exactly those amounts. Any publication penalty is in addition.
Not making an EPC available
There is a separate penalty in the EPC rules, regardless of the rating. If you do not make a valid EPC available to a prospective tenant or buyer, you can be fined £500 to £5,000, based on the rateable value of the building. An EPC is valid for 10 years, so a certificate that has lapsed needs replacing before you market the unit. See what an expired commercial EPC means.
Who enforces
The minimum standard is enforced by Local Weights and Measures Authorities. They can serve a compliance notice up to 12 months after a suspected breach.
Does paying the penalty fix the problem?
Not on its own. A penalty notice can also set out action the landlord must take to remedy the breach, and the period allowed for it (regulation 38). In practical terms, the penalty does not change the rating. The way out of a breach is the same as the way to avoid one.
Avoiding it
- Check the rating and the date on your unit's certificate. If it has expired, get a new one before you market the unit.
- If it is F or G, decide: improve to E, or register an exemption if one genuinely applies. See MEES exemptions for commercial property.
- If it is E, you meet the standard today, but with no margin. See what an E rating means for your unit.
- Keep records: certificates, quotes, advice and any exemption evidence.
How many units are at risk
On our count from the Energy Performance of Buildings Register (load dated 1 October 2026), 63,206 let units of up to 1,000 m² across England and Wales cannot be let today without action: 4,465 rated F or G on a valid certificate, and 58,741 with an expired EPC. "Let" means at least one certificate was lodged for letting, so this is evidence of letting, not a count of all let units, and we cannot see exemptions. See your council's figures under every area.
Sources
- The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015, regulation 41. Checked 30 September 2026.
- Non-domestic private rented property: minimum energy efficiency standard, landlord guidance, GOV.UK, updated 5 May 2026. Checked 30 September 2026.
- Energy Performance Certificates for your business premises, GOV.UK. Checked 30 September 2026.
Checked against GOV.UK and the regulations on 2026-10-06. More help