From April 2018, The Energy Act states commercial property with an EPC rating of “F” or below will not be able to be marketed for sale or to let.
Angus Taylor explains what steps you need to take to ensure you don't get stuck with a property you can't sell.
It is estimated that at least 30% of property investors are planning to dispose of or refurbish properties that are not energy efficient ahead of the April 2018 deadline. This is a frightening statistic when you consider that it is also estimated that around 20% of commercial property have an EPC rating of “F” or below. This further tightening of the rules follows on from changes taking place in April 2016, where tenants of commercial and residential properties with an F or G rating will be able to request that their landlord carries out energy performance improvements.
What should you do to mark sure your property meets the new standard? Planning is key to ensuring you make the right decisions in the right order at the lowest cost. With 5 years to go until the new rules kick in there is time to plan environmental improvements and just as importantly time to plan on how to budget for them. Identifying those properties which need attention is the first step. There are lots of opportunities to improve the efficiency of a property and generate an income. As a Landlord you also have the added benefit that your tenants will see a reduction in energy costs and your property will be more attractive when it comes to market. You can take some simple steps to improve your EPC rating from upgrading the glass in windows and the insulation in the roof, to utilising the latest renewable energy technology.
A word of caution, don’t get carried away when making energy efficiency improvements because you need to ensure what you invest gives you the return you need. Remember this date - April 2018, because if your property becomes vacant after this date you won’t be able to sell it or let it unless it complies with the minimum EPC rating.