Act now ahead of impending changes to energy performance compliance!
As outlined in the energy act 2011 from April 2018 it will be unlawful to let properties that do not meet the minimum energy performance standards.
Currently, the requirement only extends to the need to have an EPC prior to the commencement of marketing properties with the requirement to show the asset rating (ranging from a to g) on the relevant marketing material.
Trading standards officers are able to impose fines anywhere between £500 - £5,000 based on properties rateable value for non-compliance. However, the proposed legislative changes will ensure that, according to the department for energy and climate change consultation of July 2014 , properties achieving only a rating of f or g will require the landlords/owners to implement cost-effective measures to improve the asset rating to that of the minimum standard before they are able to be let which, in turn, may impact saleability and valuations placed on such properties.
According to the aforementioned report, the energy act aims to achieve the UK's legislative targets for reducing co2 emissions from all buildings to be close to zero by the year 2050 which indicates that such minimum standards may be raised over time to ensure all UK buildings will need to reach energy efficiency standards close to that of a
Rating EPC. It is estimated 18% of non-domestic properties make up those rated f and g and it is anticipated that it may have significant implications for landlords, owners and occupiers not only affecting their marketability but also impact on valuation and other items to include lease renewals, rent reviews and dilapidations.
The government’s preferred implementation is that it will apply to new leases but with a further backstop date to encompass all leases.
Clear energy reports can assist you with your energy performance needs by offering EPC certification and advice. For further information or assistance please feel free to contact us.