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The recent Government announcements regarding changes to the requirements for Energy Performance Certificates (EPCs) only covered domestic properties, therefore if you are a commercial landlord, the rules have not changed. In this article, I provide a brief recap on the legislation and what commercial property owners should still be aware of.
Since April this year, it has been unlawful to receive rent for a property with an EPC rating of F or G. There are financial penalties for landlords not complying with the legislation, therefore it is critical you carry out a review of your property portfolio to ensure all your properties meet or exceed the minimum EPC rating of E.
Whilst the Government is stalling on providing greater clarity of future legislation requirements, we know many financial institutions are already restricting lending for any poorly rated EPC properties in a landlord’s portfolio. This is not only for new lending but also placing greater emphasis on only energy efficient properties when refinancing existing loans.
With more and more focus on energy efficiency and achieving minimum EPC ratings, now is the time for property owners to plan sensible improvements to ensure they don’t get left behind.
Property leases are already changing to reflect more efficient buildings, and the cost of energy is still very high. Tenants are therefore paying more attention to EPC ratings with inefficient buildings often struggling to let.
We know that both the requirements for EPCs and the Minimum Energy Efficiency Standards legislation is very challenging and confusing to some landlords and therefore it is critical you obtain the correct advice.
Please contact us to ensure you plan ahead, to review how energy efficient your buildings currently are and to agree how best to ensure the minimum grades can be achieved. We can’t always predict future legislative changes, however we can help to ensure your buildings meet the minimum standards, not only for now but also futureproofing for years to come. This will ensure your buildings continue to be attractive to tenants and maintain your rental income.
If you require help on how to review your commercial EPC and the changes you need to make so you don’t get caught out, then please give me a call.
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