epcforbusinesses.co.uk
Get a Quote

Who pays for a commercial EPC: landlord or tenant?

Updated 19 October 2026 · SEO Dons Editorial

The Energy Performance of Buildings (England and Wales) Regulations 2012 put the duty on the "relevant person". For a building that is to be sold, that is the seller. For a building that is to be rented out, it is the prospective landlord.

Before the building goes on the market, the relevant person must make sure an EPC has been commissioned. The regulations say an EPC counts as commissioned when a request goes to an assessor accredited for that category of building, with the information needed and "such payment or undertaking to make such payment as is usually necessary". In other words, the person with the duty is the person expected to place and pay for the order.

Using an agent does not move the duty. Government guidance says the seller or landlord is responsible for making sure there is an EPC for the building, or the part being sold or let, even if an agent is acting for them. If no EPC is made available, the seller or landlord, or an agent acting for them, can be given a penalty charge notice. GOV.UK's guidance on EPCs for business premises (checked 19 October 2026) puts the fine at between £500 and £5,000, based on the building's rateable value.

Can a landlord charge the tenant for the EPC?

Not for handing it over. Regulation 6 says the relevant person must make a valid EPC available to any prospective buyer or tenant without charge, at the earliest opportunity, and must make sure the person who ends up buying or renting has been given one, again without charge.

The duty cannot be signed away either. The government guide says the seller or landlord can be liable to a penalty if they fail to make the EPC available, whether or not the prospective buyer or tenant claims to waive their right to receive it.

Whether a landlord can recover the assessment cost some other way during a lease is a different question, and it turns on the lease itself. The government guide is clear that it cannot give legal advice and that independent legal advice should be sought in cases of doubt. If a lease clause is being relied on to pass the cost on, a solicitor or surveyor should look at the wording.

Can the cost go through the service charge?

Usually not. The RICS professional standard Service charges in commercial property (2nd edition, June 2025, effective from 31 December 2025) says the cost of obtaining an EPC would not normally be considered a recoverable service charge cost. Its reasoning is that an EPC is only required when a building is sold or rented, so it has nothing to do with providing and managing common services.

The same standard says the obligation for compliance "rests firmly with the landlord". It also says it cannot override the terms of a lease. So the practical position is:

  • the lease decides what can be recovered through the service charge
  • industry best practice treats the EPC as a landlord cost, not a service charge item
  • a tenant who is asked to contribute should ask which lease clause is being relied on

For landlords planning budgets, the commercial EPC cost guide explains what drives the assessment fee, and the guide for managing agents covers EPCs across a managed portfolio.

When does a tenant end up paying?

A tenant takes on the duty, and with it the cost of commissioning the EPC, when they become the seller or the landlord. Government guidance treats the sale of an interest in a building the same as the sale of the building, so an EPC is needed when a lease is assigned. It also says that sub-letting a building requires an EPC to be provided.

That means a tenant who assigns their lease, or sublets the premises or a separate part of them, takes on the relevant person's duties for that transaction, including commissioning the EPC if there is no valid one. If the landlord already holds a valid EPC covering the space, it can be used, because an EPC is valid for 10 years from lodgement and can be reused within that period.

Simply staying in occupation does not trigger anything. The guide says existing occupiers and tenants do not need an EPC unless they sell, assign or sublet their interest. It also lists lease renewals and extensions among the transactions that are not treated as a sale or let for EPC purposes.

Renewals still matter for minimum energy efficiency standards, though. GOV.UK's landlord guidance says landlords of non-domestic rented property can only grant a new tenancy, or extend or renew an existing one, if the property has at least an EPC E rating, unless they have registered a valid exemption.

Who pays on a new building or after a split?

On a new building, the relevant person is the person who carries out the construction. When the building is physically complete, it is their responsibility to give an EPC and recommendation report to the building owner. How that cost is reflected in the build contract is for the parties to agree.

The same applies when a building is modified to have more or fewer separate parts and the work includes providing or extending heating, air conditioning or mechanical ventilation. The guide says that once the work is complete, the person carrying out the modification works must give the owner an EPC and recommendation report.

What does a sitting tenant have to do?

Even when the landlord is paying, tenants in occupation have a legal part to play. Regulation 45 says every person with an interest in, or in occupation of, the building must allow the landlord's appointed energy assessor such access as is reasonably necessary, and must cooperate so far as is reasonably necessary for the landlord to comply.

In practice that means letting the assessor into every area, including plant rooms and any space with heating, cooling or ventilation equipment. Where a rented building must display its EPC, government guidance says making sure it is displayed is the occupier's responsibility.

Who pays if the rating is F or G?

The minimum energy efficiency standards are a landlord duty. From 1 April 2023, GOV.UK says the requirement to have at least an EPC E rating, unless a valid exemption is registered, applies to all privately rented non-domestic property, even where the tenancy has not changed. The detail is on the MEES compliance page.

The cost of improvement works is treated differently from the EPC itself. The RICS standard says that, subject to the lease and its own principles, later costs of improving energy efficiency might be a legitimate service charge item if there is a proportionate cost benefit to tenants. Again, the lease wording decides.

Sources

Common questions

Can a buyer or tenant agree to go without an EPC?

No. The government guide says the seller or landlord can be liable to a penalty if they fail to make the EPC available, even if the prospective buyer or tenant claims to waive their right to it. The duty sits with the seller or landlord, not with the other side.

Is the letting agent responsible for paying for the EPC?

The duty stays with the seller or landlord, but an agent acting for them must be satisfied that an EPC has been commissioned before marketing the building. Who pays the agent for arranging it is a matter for the agency agreement.

If I sublet part of my unit, do I need an EPC?

If you sublet, government guidance says an EPC must be provided, and as the new landlord the duty falls on you. An existing valid EPC that covers the part being let can be used instead of commissioning a new one.

Does renewing a lease mean someone has to buy a new EPC?

The government guide lists lease renewals and extensions among the transactions not treated as a sale or let for EPC purposes. The minimum standard still applies to renewals and extensions, so a landlord with an F or G rated property should check their position before renewing.

Get a commercial EPC quote

By submitting you agree to our privacy policy. We never sell your details.

Get a quote
Get a quote