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Real Estate
Monday 11th November 2019 James Whiteley 

Advance Warning to Owners and Buyers of Commercial Property

Your Premises Could Become the Next Target in the War Against Climate Change

When premises are being sold or let, the prospective buyer or tenant must be provided with an Energy Performance Certificate (“EPC”) for the premises.

EPCs give premises energy efficiency ratings which are in bands ranging from A (Very efficient) through to G (Inefficient).

Since April 2018, when the Government introduced Minimum Energy Efficiency Standards (MEES), it has been unlawful to let premises with energy efficiency ratings in band F or band G. From April 2023, this ban will be extended to existing leases of commercial premises in those bands.

The Government is consulting on increasing the MEES for commercial premises from energy efficiency band E to energy efficiency band B (or possibly C).

The Government appears minded to implement this change with effect from 2030, although it may be phased in between 2020 and 2030.

Once it does come into effect, it will be unlawful to let premises with EPC ratings in bands C (or possibly D) to G.

If you own or are considering purchasing commercial premises with an EPC rating in bands C to G, then you should be aware that your premises may well become unlettable from 2030, unless you carry out works to bring the energy efficiency rating up to band B, which could be very costly and disruptive. You should also be aware that an energy efficiency rating in bands C to G could adversely affect the value and/or marketability of the premises.

For more information on this article or any Commercial Property questions, please contact James Whiteley by email on jwhiteley@jpclaw.co.uk or telephone on 020 7644 7297 or connect with him on LinkedIn.


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