When the concept of Energy Performance Certificates was first proposed I recall the reception within the property profession was generally muted, but here we are 14 years later and never has energy performance been higher up the property shopping list than now. Admittedly, this has recently been put in to sharp focus courtesy of Mr Putin’s foray into Ukraine. If anything though this has simply accelerated the conversation on energy independence, renewables and sustainability, so there is a faint silver lining to this particularly dark cloud.
The property sector is split into two for the purposes of EPCs, residential and commercial. The stricter criteria apply to the residential sector where all lettings require an assessment of ‘E’ or better. The next approaching hurdle for landlords to clear is a wholly more stringent minimum rating of ‘C’ to be required for all new lettings with effect from 2025.
The commercial property sector presently requires an ‘E’ rating for all new lettings and this will be extended to ALL let buildings from 1st April 2023. Without the trigger event of a new lease (and a helpful surveyor or solicitor to remind them) this date is likely to go largely unheeded by many. Ignorance is however unlikely to be particularly bliss if you are caught on the wrong side of the law as fines are levied at 12.5% of the rateable value. In order to put that in to context a 5,000 sq ft modern office in Northampton would land you a penalty in the order of £8,750. Hardly small change (for most)!
Given that this sector is characterised by stock of wildly varying quality and energy performance, it is of paramount importance for landlords to be taking professional advice on how to achieve the minimum rating or apply for an exemption. Underwoods have a team on hand to discuss what may be required for your building. Alex Manual or Steve Parris can be contacted on 01604 404060 or am@underwoods.co.uk / sp@underwoods.co.uk
Posted By: Robert Keeves
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EPCs – Ignorance comes at a steep cost
When the concept of Energy Performance Certificates was first proposed I recall the reception within the property profession was generally muted, but here we are 14 years later and never has energy performance been higher up the property shopping list than now. Admittedly, this has recently been put in to sharp focus courtesy of Mr […]
