Due to the recent EPC requirements update on April 1st 2023, commercial landlords are now unable to let commercial property that has an EPC rating lower than ‘E’ without a legitimate reason.
Landlords with a property that has an EPC rating of F or G will be unable to secure new tenancies unless the property is registered on the PRS Exemptions Register.
Are you ready to implement the energy efficiency improvements needed?
If you find yourself falling short, it’s time to bust out the insulation and upgrade those heating systems.
Just think of all the energy and cost savings you’ll be raking in once you’ve made those upgrades!
You’ll also be doing your bit for the planet by helping the UK meet its net-zero carbon emissions target by 2050. Not to mention, tenants will also see the benefits: lower energy costs and improved comfort levels in their workplaces.
The government is also introducing minimum energy efficiency standards for non-domestic rented buildings from 2025. This means landlords won’t be able to lease properties with an EPC rating below band E and will need to make improvements to meet this standard.
As of 1 April 2023, it will now be an offence to rent out a property that does not have an EPC rating of at least E, and the penalty could be between £10,000 – £150,000 per breach. Details of said breach may also be made publicly available.
So, whilst these new regulations for commercial property owners and landlords may pose some initial challenges, the long-term benefits of increased energy efficiency and cost savings make them a positive development for both the environment and the commercial property market.
We understand that some landlords may be worried about the cost of implementing the necessary upgrades. However, it’s important to remember that these changes are investments in the future of the property and the planet.
Despite the changes to regulation being in the public domain for quite some time, research by Handelsbanken 6 months ago found that the vast majority of commercial landlords were unprepared for the changes.
If you find yourself in this boat, we explain how you can make the required improvements here.
In any case, we urge property owners to start preparing now for these new regulations. The earlier you start making energy efficiency upgrades, the smoother the transition will be.
So, let’s embrace these changes as an opportunity to create a more sustainable future and reap the benefits that come with it.