The Energy Efficiency (Private Rented Property)
(England and Wales) Regulations 2015
The minimum level of energy efficiency provisions will mean that, subject to certain requirements and exemptions:
a) from 1 April 2018, landlords of non-domestic private rented properties (including public sector landlords) may not grant a tenancy to new or existing tenants if their property has an EPC rating of band F or G (shown on a valid Energy Performance Certificate for the property).
b) from 1 April 2023, landlords must not continue letting a non-domestic property which is already let if that property has an EPC rating of band F or G.
This could have significant consequences for the owners/landlords of commercial properties. This could affect leases, lease renewals and valuations.
The energy we use in our commercial buildings for heating, lighting and power is responsible for around 12% of the UK’s emissions. Around 60% of today’s commercial buildings will still exist in 2050, representing around 40-45% of the total floor space. Whilst standards to tackle the performance of new buildings have been in place for some time, minimum standards to drive improvements in the performance of the existing stock through energy efficiency upgrades are essential going forward to tackle energy used and reduce emissions across the commercial stock.