Do you have enough Energy?

New Regulations to introduce Minimum Energy Standards for Commercial Properties

By April 2018, landlords will not be able to let commercial properties which have an energy performance certificate rating below an E, subject to certain exceptions.

A property will be deemed “sub-standard” if it falls below this rating.

From 1 April 2023, the new regulations will also be applied to existing tenancies i.e. tenancies granted before April 2018 but which will expire after this date.

The incoming rules will affect both landlords and tenants.

Landlords will need to consider whether any works need to be carried out to improve the ratings of their property to comply with the regulations.

Tenants (and prospective tenants) of properties with below E ratings should be reviewing their leases to check whether the landlord’s costs of carrying out any works are recoverable from the tenants through service charge etc.

The regulations may also have an impact on rent reviews taking place post-2018 and any dilapidations claims.

It should be noted that changes are also being made to the EPC regulations in respect of residential properties, although these are not dealt with in this blog.

If you would like to discuss any of the above, please do contact our Property team at Foskett Marr Gadsby & Head LLP (based in Epping and Loughton) on 01992 578 642 (https://www.foskettmarr.co.uk/index.php/our-team/commercial-property-solicitor-essex/.)