8:03 AM, 24th November 2022, About 2 weeks ago 19
Propertymark is warning commercial letting agents and landlords about a change in energy efficiency regulations for business buildings.
They say that from 1 April 2023, the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 will apply to all tenancies, including those that are currently existing and ongoing tenancies.
The rule change will mean that landlords will not be able to continue to let a non-domestic property which does not meet the minimum standard rating of ‘E’ unless there is an exemption which has been registered.
According to the government’s Heat and Buildings Strategy ‘around 40% of all energy consumed in commercial and industrial buildings in England and Wales is in the rented sector, placing more responsibility on landlords to make energy efficiency and heating improvements.’
In response to this, Propertymark has created a series of answers to FAQs to support their members and, in turn, their landlords which include details of the exemptions and enforcement.
Anthony Meadowcroft, the NAEA commercial president, said: “Landlords that need an EPC will be best to consult their local EPC assessors in preparation for any effected change, along with planning if there are any energy efficiency upgrades required.
“As some commercial tenants have in place Full Repairing and Insuring (FRI) leases that put maintenance responsibility onto commercial tenants, there needs to be a strong and transparent re-enforced message that this change will indeed have to be actioned by the landlord and not fall onto the tenant.”
Propertymark members can access the FAQs about energy efficiency changes in commercial buildings by logging into the site’s member area.
The organisation also held an Assessing Commercial Property and Business Values webinar on 15 November where attendees discovered how current factors such as inflation and cost of living may have a knock-on effect on sellers pricing and buyer demand in both the leisure and retail markets. Agents can also download a recording of the webinar.