Landlords of commercial property will now be aware that it is a legal obligation to provide an (EPC) Energy Performance Certificate with a rating of E or above to a prospective tenant, prior to the granting of a new or renewal lease.
From 1st April 2023 this requirement will be extended to both new and existing leases, meaning that landlords cannot continue to let or sub-let a commercial premises with an EPC below an E rating.
Landlords could face a penalty up to a maximum of £150,000 at any time during a commercial lease term if they are not able to produce a valid Energy Performance Certificate showing an energy efficiency rating of an E or higher. The penalty, that comes into force from April 2023, is based on the property’s rateable value.
However, there are some buildings exempt from the requirement to provide an EPC altogether, but the Landlord must consider these exemptions.
Moving forward it is best to plan long term as the Government proposes as all commercial properties should have an EPC rating of a grade B or above by 2030.
To find out how Rushton Hickman can assist with your commercial property matters, please contact Rushton Hickman Property Consultants on 01283 517747 or email email@example.com