The Energy Act 2011 will not come into force until 1 April 2018, but commercial landlords are advised to start planning now, or face great difficulties in the future.
The Act will introduce a minimum acceptable energy level rating (currently suggested to be an E rating). Any building rated lower than this will not be able to be rented out unless significant efforts have been made to improve. Around 20% of rented commercial property falls into this scope which means a vast number of landlords could be in trouble.
In order to upgrade properties to an acceptable level before the ban comes into force, landlords are being advised to take advantage of the government’s ‘Green Deal’. The Green Deal allows works to be carried out to improve energy ratings without any upfront costs. Instead, the costs will be claimed back from savings the landlord makes in future energy bills. All the landlord has to demonstrate is that anticipated energy savings are at least as high as the cost of the works carried out.
We would suggest all landlords commission updated Energy Performance Certificate to establish whether they fall below minimum energy standards and decide whether the Green Deal could be of benefit to them.
