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Energy performance certificates for commercial properties – What do you need to know?

Energy Performance Certificates (EPC) provide valuable insights into the energy efficiency of a building, rating its performance from A (most efficient) to G (least efficient).

EPC ratings apply to all non-residential properties and failing to provide an EPC to potential buyers or tenants may result in fines ranging from £500 to £5,000, depending on the property’s rateable value.

Legal requirements

The Government requires obtaining an EPC for any commercial property that is being sold, rented or built.

There are specific circumstances where a property might be exempt from an EPC, but these cases are not common.

From 1 April 2023, the Government introduced stricter regulations for commercial properties, requiring all existing commercial properties to have an EPC rating of E or above.

Unless a valid exemption is applicable, landlords of commercial properties with ongoing tenancies must carry out all economically viable energy efficiency enhancements as outlined by Minimum Energy Efficiency Standards (MEES).

Leasing a commercial property with an EPC rating of F or G is unlawful.

Importance of EPCs

EPCs offer more than just a rating, they serve as a reflection of a building’s environmental impact and operational costs.

A high EPC rating can lead to reduced energy bills, improved tenant appeal and a lower carbon footprint.

Conversely, a low rating may indicate the need for improvements to enhance energy efficiency.

EPCs are increasingly becoming a focal point in the broader context of sustainability for businesses and corporate social responsibility.

Impact on property value and leasing

EPC ratings can significantly influence the value and desirability of commercial properties.

Properties with higher ratings often command higher rental rates and are more attractive to prospective tenants who prioritise sustainability and lower operating costs.

For landlords, investing in energy efficiency improvements can not only ensure compliance with legal standards but also enhance the marketability and value of their properties.

With rising living costs and energy expenses, higher EPC ratings are becoming even more appealing for prospective buyers and tenants.

Assessing and improving your property’s EPC rating

To assess or improve your property’s EPC rating, consider using the services of a certified energy assessor. These professionals can conduct a thorough evaluation of your property and suggest measures to enhance its energy efficiency.

Common recommendations include: