Commercial property owners urged to check EPC rating

Published on: 7th November 2017

Commercial property owners in England and Wales have just over fourth months to check their property’s EPC rating and secure an energy efficiency rating of E or above.

Due to the new minimum energy standard, as of 1 April 2018 landlords will not be able to let commercial premises or renew leases if the EPC rating is lower than an E.

David Fairley, partner in our building consultancy team and accredited non-domestic energy assessor, considers the potential impact for commercial landlords and possible ways forward in improving the energy performance of their buildings.

David commented, “Some estimates suggest that over 50% of EPCs completed in the early years are incorrect. Over the last few years, we have come across a number of inaccurate EPCs, particularly those carried out between 2008 and 2011. With EPC’s needing to be renewed every ten years, or at the point of the next leasing event, some landlords might be in for a surprise from 2018.

“Checking the EPC rating and understanding the cost and benefit of improvement measures may be worthwhile to prevent possible negative impacts on property values.

“It has been a requirement for all qualifying commercial buildings to have a valid Energy Performance Certificate (EPC) prior to letting or sale, for nearly a decade now, however to date there has been little negative impact of owning a property with a poor EPC rating. It will be interesting to see how the regulations affect the market over the next 12 months and how they are enforced but we advise affected landlords to register exemptions ahead of the April 2018 deadline.”

According to the regulations non-compliance of the new standards may result in a fine, to be levied by the local Weights and Measures Authority, and publication of names of those who have fallen foul.

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