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EHL UK is a company you can trust for all your Commercial & Industrial Building Services. We have been operating In Newton Aycliffe since 1993 and expanded our offices to Midlothian and Halifax to give a response time that is second to none and also building up an enviable reputation for reliability and quality of service covering Regional & National Contracts.
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This article builds on the 7 things you need to know about the 2018 EPC changes blog post we produced to give a high level overview of the key issues surrounding the changes applying to both residential EPCs and commercial EPCs. This article is written with a specific focus on commercial real estate and summarises the report from the Department of Energy & Climate change on the new 2018 EPC regulations.
From 1 April 2018, the minimum energy efficiency standard will be set at an E, meaning that commercial property with an EPC rating of F or G will require improvements to the buildings to improve the energy efficiency rating before a lease can be granted.
The 2018 EPC regulation changes will apply upon the granting of:
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WHY DOES IT AFFECT COMMERCIAL LANDLORDS?
The reason is because it will be the landlords responsibility to take action to ensure that if they wish to lease their commercial property, that the energy efficiency rating falls between the A - E EPC ratings. If the energy efficiency improvement works are cost effective, permissible and appropriate, then it is up to the landlord to make arrangements to get the works done.
If a landlord feels that their property is exempt, and that they should be allowed to lease their commercial premises, even with an F or G rating, then they can apply to notify this on a centralised register - the Private Rented Sector (PRS) Exemptions Register.
As an agent, if your client`s properties are non-compliant then you will not be able to lease them until they are. The time taken to make improvements could cost both you and your clients lost revenue. Commercial real estate agents are in a good position to advise landlords of the changes to ensure they have awareness of:
If a landlord has a commercial property that falls in the scope of the regulations, but the landlord has not ensured that their property is compliant, or has not sufficiently proved an exemption, then a Local Authority is within its power to serve a compliance notice on the landlord requesting that further information is sent to them to confirm compliance. If this information is not provided or does not prove compliance, then a penalty notice may be issued. The landlord will have the right to appeal a penalty.
The penalty is £5,000 for providing false or misleading information to the PRS Exemptions Register, or for failing to comply with a compliance notice from a Local Authority.
The penalty for renting out a non-compliant commercial property is as follows:
We often provide advice to our clients on what energy improvements can take their EPC rating from an F or G to achieving at least an E. Sometimes these changes are as simple as changing the type of lighting or replacing an old boiler. If you want to find out more aboutCommercial EPCs, feel free to get in touch on 08719769620 or E;mail firstname.lastname@example.org
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