Commercial landlords should leave energy performance red tape to agencies

Aug 20 2008 by Tony McDonough, Liverpool Daily Post

IT IS vital commercial landlords are prepared for the introduction of Energy Performance Certificates (EPCs) which come into force from October 1.

The EPCs will be an important new selling point to potential tenants.

In essence, from October, tenants will be able to ask landlords with buildings over 50 sq m for an EPC, which assesses the energy efficiency of buildings.

However, attempts to sell or let properties without an EPC will incur a minimum £200 penalty, plus the £75 cost of the certificate.

EPCs are generally a positive move, as they provide really useful information for both tenants and landlords.

Nevertheless, we would urge landlords not to bog themselves down in this new raft of red tape. EPCs are best handled by a lettings agent which understands the process and can manage it quickly and efficiently.

This third and final regulation date is a timely reminder to commercial property landlords that they already face much stiffer fines. Commercial landlords attempting to sell or let properties without an EPC can be hit with fines of between £500 and a more eye watering £5,000.

The EPC legislation first came into effect from April 6 for all buildings over 10,000 sq m and this was followed by regulations on July 1 for EPCs on buildings over 2,500 sq m.

The EPC provides “A” to “G” ratings for all buildings, whenever they are built, sold, or rented out, with “A” being the most efficient and “G” being the least. The average property has a “D” rating.

EPCs form part of the Department for Communities and Local Government’s continuing fight to reduce carbon emissions in the UK.

Buildings account for 50% of the UK’s carbon emissions – of which 20% comes from the commercial sector.