News Article

Landlords and Businesses Be Aware of April's Change to Commercial Buildings Energy Efficiency Regulations

If you are a landlord and own commercial properties with an EPC energy rate of ‘F’ or lower in your portfolio you really need to act quickly!  You need to be able to demonstrate that you have strived to achieve the highest Energy Performance Certificate (EPC) band possible.

Businesses that rent their commercial property should check the energy efficiency rating of their premises and assess, under the terms of the lease, who is responsible for paying for any required upgrades.

If renting a new property, the same checks should be carried out to ensure business continuity will be possible.

From April 1, new legislation will make it illegal to rent or lease out commercial properties with an EPC energy rate of ‘F when the latest Minimum Energy Efficiency Standard ruling will come into force in England and Wales, affecting both continuing and existing leases and also new leases taken out.

The aim of the legislation is to help achieve net-zero carbon emission targets by 2050. Currently, non-domestic buildings contribute 23% of UK built environment emissions.

It is thought thousands of commercial properties will not meet the minimum standard required by April.

Continuing to rent out non-compliant property after April 1 could lead to a fine of 10-20% of your property’s rateable value - up to £150,000  - unless you have been granted an exemption.

To meet the new rating, it is likely your premises will need a number of improvements, which could include fitting a replacement boiler, double glazing, wall or solid floor insulation or solar panels, or installing solar- powered water heating.

If you need help arranging insurance for your property portfolio please contact Nigel Kennedy on 07951 120328 or email nkennedy@reesastley.co.uk

 

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