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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.

Since the Government announced its target to be net zero by 2050, it has introduced various measures as part of its roadmap to reach its goal. However, you ask people about the Heat and Buildings Strategy (the critical document relating to reaching minimum Energy Performance Certificate (EPC) levels) and people just look at you blankly!

Everyone wants to contribute towards being more energy efficient but there is a wealth of information out there and much conflicting advice, which just leads to confusion.

“Should I get a gas boiler while I can?”

“Should I invest in a new air source heat pump?”

“What can I do with my own property to help climate change?”  

“Should I join the solar revolution?”

There are lots of questions and the general impression is that there is not enough public knowledge and awareness on how to make changes to their property so that it complies.

All commercial landlords should be checking the EPC ratings of their properties as this will help them decide if they are going to arrange for energy efficiency upgrades, or sell the property before the Government legislation tightens. We are also hearing of many financial institutions restricting lending, as they take into consideration any poorly rated EPC properties in a landlord’s portfolio. This is not only for new lending but also placing a much greater emphasis on only energy efficient properties when refinancing existing loans.

With more and more emphasis on energy efficiency and achieving minimum EPC ratings, there is a great opportunity to plan sensible improvements and ensure you don’t get left behind.

Property leases are already changing to reflect more efficient buildings and the cost of energy is still very high. It’s critical you obtain the correct advice. Please also see the link to our previous article here on why it makes sense to review your commercial EPC now.

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 Robert Franklin, Head of Architecture & Building Surveying, a call on 01234 362917 or email rjf@robinsonandhall.co.uk

Allow yourself five minutes to check your Energy Performance Certificate (EPC) today and it may save you time, aggravation and a lot of money in a few months’ time.

Government legislation now states it is unlawful to grant a new tenancy or extend an existing lease for a property with an EPC rating of F or G. There will be financial penalties for not complying with the legislation, therefore we recommend landlords carry out some simple checks sooner rather than later.

The legislation will also extend to all existing commercial leases from April 2023. So even if you think the regulations do not affect you straight away, it is essential you properly plan to ensure you can continue to let your property in the future.

Figures from the Office for National Statistics (ONS) highlight that 9% of non-domestic properties in Bedfordshire are in the danger zone of an F or G rating. These figures are fairly typical across the whole country so ask yourself the question – is your building one of them?

Energy Efficiency

EPCs were introduced in 2008 but only have a 10-year lifespan before they need renewing. You will therefore need to consider the following:

Looking further ahead

It doesn’t stop at F and G rated properties. The Government is currently consulting on bringing in tighter legislation by 2030. They are consulting on whether to make it unlawful to let a commercial property with an EPC rating below a C, or possibly even a B.  It is worth bearing this in mind and to get the right advice and plan ahead now.

Risks

In addition to the fines imposed on poorly rated F and G properties, the following is affected:

We can help

It is the landlord’s responsibility to ensure their property has a valid EPC.  However, many will be unaware of what their current EPC rating actually is. Although the regulations appear to be another burden for the landlord, we believe they should be seen as an opportunity to enhance the energy efficiency of their properties. Yes, there may be costs involved, however you should see this as a chance to make improvements to extend the long-term value of the building.

For further information about how we can help you improve your EPC, please contact Robert Franklin.