If you own, manage or let a listed or historic commercial building, a significant change confirmed in January 2026 deserves your full attention. For years, heritage status created genuine uncertainty around EPC obligations. That uncertainty has now been resolved, and not in the direction many landlords may have assumed.
The January 2026 position: no more blanket exemptions
On 21 January 2026, the government published its response to the Reforms to the Energy Performance of Buildings regime consultation alongside the Warm Homes Plan.
The Government has significantly narrowed the circumstances in which heritage status alone can be relied upon to avoid obtaining an EPC.
Historically, many owners and agents interpreted the protected building provisions as meaning listed buildings did not require an EPC under the Energy Performance of Buildings (England and Wales) Regulations 2012. In reality, the regulations were more nuanced, leading to considerable uncertainty. Many owners and agents interpreted this more broadly than intended, assuming that listed status alone removed the EPC requirement entirely.
The January 2026 confirmation draws a firm line under that assumption. Heritage buildings are not exempt from the obligation to obtain an EPC. What may differ is how the assessment is carried out and what improvement recommendations are practically achievable given the physical and legal constraints of the building.
What kinds of buildings does this affect?
The scope is broader than many people realise. It covers Grade I and the more numerous Grade II listed properties, locally listed buildings, buildings in designated conservation areas and scheduled monuments that are also used as premises. In England alone, there are over 400,000 listed building entries on the National Heritage List, with Grade II properties making up around 92% of the total. A very significant proportion of these are in commercial use or have commercial elements.
If you have assumed that your historic office, period retail unit, converted barn, former mill or Georgian townhouse in commercial use sits outside EPC obligations because of its age or protected status, the January 2026 position requires you to revisit that assumption.
The practical trigger points for an EPC
EPCs for commercial buildings are required at the point of marketing a property for sale or let, when a building is newly constructed and when specified building-services conditions apply during changes in occupation. If a valid EPC is not in place when required, civil penalties between £500 and £5,000 can apply based on rateable value, for failing to make one available to prospective buyers or tenants.
An EPC is valid for ten years. If yours has expired, or was never obtained on the basis of an assumed heritage exemption, that is the first thing to address.
What about MEES and heritage buildings?
This is where things become more nuanced, and where taking proper professional advice is important.
The Minimum Energy Efficiency Standards apply to privately rented non-domestic properties across England and Wales. Since April 2023, MEES has applied across all such properties, not just those where a new tenancy has recently been granted. Properties must meet at least EPC E to be legally let. Penalties for non-compliance can reach up to 20% of rateable value for longer-duration breaches, subject to a cap of £150,000, and publication penalties allowing local authorities to name non-compliant landlords on the register are also available.
Exemptions do exist within the MEES framework that are specifically relevant to heritage buildings. A landlord can register a valid exemption where works needed to meet the standard cannot be carried out because they would unacceptably alter the character or appearance of a listed or similarly protected building, where third-party consent such as listed building consent cannot be obtained, or where the property meets the high-cost exemption threshold under the £10,000 cost cap.
There are two important things to understand about these exemptions. First, they must be formally registered on the PRS Exemptions Register and supported by proper evidence. They are not automatic and they are not permanent. Second, registering an exemption still requires an EPC to exist in the first place. You cannot simply declare a building exempt without first understanding its energy performance rating.
Enforcement is tightening
The new PRS database being introduced under the Renters’ Rights Act 2025, expected from late 2026, will make it considerably easier for local authorities to identify properties where EPCs are missing, expired or where exemptions are not properly evidenced. Enforcement is becoming more data-led and more consistent. Properties that have relied on informal assumptions or undocumented heritage status arguments are likely to attract attention first.
What heritage building owners should do now
Start by confirming whether your commercial heritage properties have valid EPCs in place. If they do not, getting an assessment commissioned should be a priority.
If you have an EPC, check when it expires. New EPCs issued from late 2026 onwards are expected to use updated metrics under the reformed Energy Performance of Buildings regime, so understanding your current position before re-assessment under the new system is a sensible step.
If you believe a MEES exemption may apply to one of your properties, the important thing is to get that properly assessed, documented and registered. An experienced commercial assessor will be able to advise on what improvement measures are feasible within the constraints of a protected building, where listed building consent may be required and what the exemption register process involves. Informal advice or assumptions will not provide adequate protection if enforcement follows.
The direction of travel is clear
Further reforms to the Energy Performance of Buildings regime are ongoing. The January 2026 announcements signal tighter requirements and better enforcement ahead, not looser ones. For heritage building owners and agents, the sensible course is to treat this as a prompt to get your EPC position in order now, while there is still time to plan and act without pressure.
The properties most likely to face difficulty in the years ahead will not be those where a genuine, well-documented exemption was properly registered. They will be the ones where the paperwork was never addressed at all.
If you manage commercial heritage properties and would like to understand your current EPC and MEES position, our team is here to help. You can call us on 020 3143 1881 or 01223 269 215, email info@beachenergy.co.uk or visit www.beachenergy.co.uk.
The information in this blog is based on the government’s January 2026 announcements and existing EPC and MEES regulations. Given that further reforms are ongoing, we recommend taking specific professional advice for your individual properties.
