Landlords and tenants should be aware of the regulatory changes being imposed in accordance with the Energy Act 2011, bringing in measures to improve the energy efficient of certain buildings in England and Wales.
From 2018, certain commercial properties with an Energy Performance Certificate (EPC) rating of ‘F’ or ‘G’ will not be permitted to be leased or sold, unless the EPC rating is improved to an ‘E’ rating. For your information, the ratings of an EPC range from ‘A’ (very energy efficient) to ‘G’ (the least energy efficient rating).
In relation to non-domestic property, the regulations will apply only to the grant of a new lease from 01 April 2018 and then from 01 April 2023 the regulations will also apply where the landlord “continues to let”.
We recommend that all landlords and tenants give careful consideration to these changes when entering into new Leases now, so that specific provisions can be included in the Lease to specify who is to cover the costs of any required capital expenditure.
Landlords may also wish to seek advice from an Energy Certification Advisor, who may be able to advise on cost effective methods of increasing the energy efficiency of their buildings and carry out a full review of existing EPCs, to see whether the ratings are in fact correct.
If you need more information or require a referral to a recommended Energy Certification Advisor please contact Simon Abbotts, solicitor, at Beswicks Legal on 01782 205000 or firstname.lastname@example.org