EPC timescales for commercial landlords are ‘unachievable’

EPC timescales for commercial landlords are ‘unachievable’

0:08 AM, 24th February 2023, About A year ago 1

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More than half (52%) of commercial landlords do not think EPC timescales are achievable, according to new research.

The findings from consulting firm RSM UK reveal that just a third (36%) of respondents believed the timescales are achievable, while 12% remained unsure.

Nearly a fifth (18%) of commercial landlords still have properties with an EPC rating of F or G. In spite of new legislation coming in on April 1st demanding they have a minimum E.

‘A black hole in the rental market’

In the survey, 30% of respondents slightly or strongly disagreed that the UK’s real estate sector is making quick enough progress to reduce its carbon footprint in line with government Net Zero targets, down from 39% the previous year.

Similarly, 41% of businesses surveyed slightly or strongly agreed that enough was being done, a slight (4%) increase on the previous year.

Stacy Eden, partner and head of real estate at RSM, said: “Although it is encouraging to see landlords respond well to the government’s approach on environmental solutions so far, there remains real concerns, especially with landlord willpower being the biggest barriers to decarbonisation.

“More worryingly, almost one fifth of landlords own commercial property which will be deemed unlawful to let as of April 2023, which has further implications for landlords and their income streams.”

He added: “With further EPC legislation expected to arrive by 2030, government support is needed, or we could start to see a black hole in the rental market.”

Lack of landlord willpower to invest in environmental solutions

Nearly half (40%) of real estate businesses confirmed they had written plans and strategies in place relating to their environmental, social and governance (ESG) commitments, whereas 44% confirmed they didn’t have ESG strategies.

More than a third (43%) of landlords believed that the government’s attitude towards making progress on environmental goals would encourage them to act on investing in ESG friendly solutions, with 58% also completely or somewhat understanding the ESG agenda.

However, landlords perceived the biggest barrier to decarbonising the real estate sector to be lack of landlord willpower to invest in environmental solutions (33%), the impact of the energy crisis (32%), and the lack of cost-effective tech solutions (30%).


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Comments

Beaver

12:27 PM, 24th February 2023, About A year ago

I was talking to the owner of a commercial property about this two weeks ago. After the cost of installing the photovoltaics, the infrastructure to handle it the power, the infrastructure to install the power and dealing with all the other consequences it wasn't looking likely that after tax that there would be any benefit.

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