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The Propertymark Commercial Outlook Q1 2025 reveals a resilient commercial property sector navigating economic uncertainty with cautious optimism. While inflation remains above target and lending challenges persist, strong confidence continues in the Industrial and Class E sectors.
The Act, now over 70 years old, gives business tenants a legal right to renew their leases in many circumstances — a framework that has faced growing criticism for being outdated and overly complex. Propertymark responded to the consultation, advocating for modernisation of the legislation to reflect the current needs of businesses. These initial recommendations come as part of a wider review focusing on how well the law is functioning for commercial property leases.
Propertymark’s response to the Ministry for Housing, Communities and Local Government (MHCLG) consultation on reforms to the Energy Performance of Buildings (EPB) regime addresses the wide-ranging proposals, covering changes to Energy Performance Certificates (EPCs), Display Energy Certificates (DECs), and Air Conditioning Inspection Reports (ACIRs). We welcome many of the proposed reforms but have also raised concerns, especially around commercial and heritage buildings and HMOs, and made recommendations to ensure the final policy is fair, practical, and effective.
Recent research from Search Acumen indicates that the commercial property sector is on track to miss the UK Government's 2030 Minimum Energy Efficiency Standards (MEES) target, with full compliance projected only by 2040. Around half of all energy consumed in commercial and industrial buildings in England and Wales is in the rented sector, placing the onus on landlords to make energy efficiency and heating improvements.