Legislation says commercial properties need an EPC – here’s why

by Readers Question

14:50 PM, 28th February 2017
About 2 years ago

Legislation says commercial properties need an EPC – here’s why

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Legislation says commercial properties need an EPC – here’s why

When it comes to running a commercial property, whether that’s being a landlord, or managing another kind of commercial property, you can find yourself in need of an energy performance certificate. The EPC was part of a green EU initiative designed to diagnose and document various buildings energy efficiency and CO2 emissions, and therefore, their environmental impact. energy

Introduced on August 1st 2007 as part of the Home Information Pack (HIP), the Energy Performance Certificate is required by UK law for all domestic and commercial properties that meet a certain specification.

Initially aimed mainly at domestic properties with four bedrooms or more, this was extended to both smaller properties and domestic over the following years. In later years HIP was made redundant, but the EPC stayed necessary for homes, and properties, both commercial and domestic, with heavy, hefty fines and sanctions in place for those that don’t keep to it, and document up to date energy performance certificates.

With commercial properties, an energy performance certificate is necessary and mandatory for properties over fifty square meters floor space. When originally implemented, the energy performance certificate was primarily for domestic properties, but it later became mandatory for all properties bar a few notable exceptions. All domestic properties require an EPC. When it comes to letting commercial properties, having a great EPC grading can be a real boon.

The most efficient commercial properties will be much more appealing to let, especially if it’s a large property, as this can mean it’s much cheaper to run on a day to day basis, which can make things much easier on the outgoings of the business, even if the property is slightly more expensive than competitors.
As a newer, smaller business, you’re better off renting somewhere slightly more costly, if you’re going to make a substantial saving on energy costs, essentially when compared to earlier commercial properties. It’s better to rent somewhere that’s going to cost you less in the long term, especially when as a start-up you don’t know when funding is going to come in and how much. Little savings can make a big difference in the beginning of a business.

Penalties and fines for failing to meet the UK government’s legislation on having an EPC can be strict. Both for domestic and commercial properties, sanctions and fines can be well into the thousands for failing to have an accurate, up to date EPC survey.

As a commercial enterprise however, these fines can be even higher, which can be crippling to smaller, newer businesses. If you make any major modifications or additions to your property it’s advised that you get a fresh energy efficiency certificate performed on your property, making sure it’s completely up to date.

If you’re selling or letting your property, then you need to get an EPC survey done, otherwise you risk further fines, which can make the letting process even more time consuming and costly. It might be easier to let commercial properties, rather than domestic, but you still need to make sure your EPC is up to date.

Becky



Comments

Neil Patterson

14:51 PM, 28th February 2017
About 2 years ago

Thank you Becky 🙂

terry sullivan

11:14 AM, 1st March 2017
About 2 years ago

most epcs are hardly worth the paper they are printed on--the performance is not measured--it is based on answers to questions such as cavity wall insulation, double glazing etc in other words it is virtual not real

Neal Craven

11:20 AM, 1st March 2017
About 2 years ago

Choose your assessor with care –assumptions are not your friend
Results are variable and with MEES on the horizon it now matters.

Richard Peeters

12:22 PM, 1st March 2017
About 2 years ago

What kinds of commercial properties are excluded? E.g. listed buildings?
Does the leaseholder or freeholder have to get the EPC?

Neal Craven

13:09 PM, 1st March 2017
About 2 years ago

terry sullivan

13:21 PM, 1st March 2017
About 2 years ago

is an hmo a commercial building?

Richard Peeters

13:44 PM, 1st March 2017
About 2 years ago

"Unacceptable" to whom?
It sounds like the landlord/freeholder is responsible for the EPC and any upgrade works on a leased building, not the leaseholder/tenant.
If my landlord finds it "unacceptable" (e.g. because of cost) to carry out works on this listed building, to improve its energy rating, then presumably he's off the hook?
And/or
If the measures include secondary internal insulation panels (because of the solid brick walls), that would encroach significantly into the available office space. This would be unacceptable to us as occupants!

terry sullivan

14:13 PM, 1st March 2017
About 2 years ago

commercial=fri? down to lessee?

Richard Peeters

14:32 PM, 1st March 2017
About 2 years ago

Reply to the comment left by "terry sullivan" at "01/03/2017 - 14:13":

Terry, I think this would be a major upgrade (capital expenditure) rather than an FRI "repair" (operating expenses), so not one of the lessee's responsibilities.

Michael Barnes

18:25 PM, 5th March 2017
About 2 years ago

Reply to the comment left by "Neal Craven" at "01/03/2017 - 11:20":

"MEES"?

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