Commercial property owners have ten months to check their property’s energy performance certificate (EPC) rating and secure an energy efficiency rating of E or above, warns independent property consultancy Sanderson Weatherall.
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.
Chris Howell, Chartered Surveyor at Sanderson Weatherall, is concerned that many EPC certificates may be inaccurate and therefore many properties will actually drop below the required rating.
Chris 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 that are inaccurate, 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 benefits of improvement measures is worthwhile, especially to prevent a possible negative impact on property values. It will be interesting to see how the regulations affect the market over the next 12 months.”
An EPC rates how energy efficient a property is, A being the most efficient grade and G being the least. The requirement for all commercial buildings to have an EPC was first introduced nearly a decade ago, however to date there has been little negative impact of owning a property with a poor EPC rating.
It is yet to be confirmed how the regulations will be enforced, but it is expected that non-compliance of the new standards will result in a fine.