Latest News on Energy Performance Certificates in Poole

MEES Header

The Energy Act 2011 contains a number of provisions which will affect owners and occupiers of property. Probably most significant are the proposed minimum energy standards.

From April 2018, the proposed legislative changes would make it unlawful to let residential or commercial properties with an EPC Rating of F or G (i.e. the lowest 2 grades of energy efficiency).

This could have very significant implications for landlords, and for occupiers who wish to assign or sublet space, including:

  • Marketability of some properties would become impossible unless they were upgraded to meet the minimum standards. It is estimated that approximately 20% of non-domestic properties could be in the F & G rating brackets.
  • Further clarification on the transactional trigger for minimum energy standards is awaited; however the new minimum standards could apply to all lettings and re-lettings, including sub-lettings & assignments.
  • Valuations of such properties could be affected if their marketability is diminished.
  • Rent reviews for properties in this situation could also be affected.
  • Implications for dilapidations assessments wouldalso exist.

Given this risk to property owners and occupiers it is clear that a full understanding of the energy efficiency of your property assets should be attained.

Property owners and occupiers should also consider how their property values may be affected.

What can you do?

In the first instance, we suggest that if you let space in your buildings you should contact us so we can help you to identify the potential impact of the proposed legislative changes and the risk to your portfolio.

Clearly affected landlords and occupiers will want to minimise risk.

There is a high likelihood that the minimum energy standards proposed for 2018 will be raised in the future and Government is committed to implementing this policy.

We suggest the following immediate actions to provide you with a clear picture of the implications that this legislation have for you:

  • All rentable property should have an EPC Assessment carried out.
  • Where the EPC Rating is "F" or "G" (or is at risk of becoming so) an "Energy Efficiency Plan" should developed to provide details of the most economic way of bringing the building up to the required standard or prove exemption.
  • Energy efficiency improvements should take advantage of void periods, lease breaks and/or be included as part of the on-going maintenance and plant renewal programme.
  • Energy efficiency improvement works would need to be implemented before a new lease is granted or an existing lease renewed.
  • In limited, circumstances landlords may be able to claim an exemption from this prohibition on letting sub-standard property.

Contact us

Please do not hesitate to get in touch. You can call or e-mail using the details below:

Mobile:07889 093936

E-Mail: abenergyassessors@hotmail.com

Website powered by BT