Most landlords are aware that there is a minimum EPC rating for residential properties – currently ‘E’ with the likelihood of going to a ‘D’ rating, or even a ‘C’ rating in the future.
What is less well known is that this will also apply to commercial properties from April 2023.
Nearly two-fifths of commercial landlords are unaware of new standards
A recent survey by Handelsbanken states ‘Nearly two-fifths, or 39%, of commercial landlords are unaware of new standards on energy performance certificates that come into force next April, according to Handelsbanken, which it says “underlines the confusion in the market and need for longer-term planning”.
The lender says 16% of commercial landlords report they are planning to sell their properties as they find the new EPC requirements “too daunting, primarily as they cannot afford to make the requisite changes”.
The main reasons cited by landlords who have not made plans to improve their properties, were that current regulations make it too difficult to do so, at 42%, a lack of knowledge about what changes to make, at 38%, and not believing that they can access the appropriate finance, at 14%.
Handelsbanken UK head of sustainability Richard Winder says: “It is worrying that so many landlords declared themselves unaware of the April 2023 deadline, though there are signs many are taking action, for example by investing in double glazing and extra insulation.
“Although money is getting tighter right now, the rise in fuel costs and further planned hikes in energy efficiency standards make carbon-reducing measures a smart investment for landlords and tenants alike.
“Landlords will want to start by consulting their existing Energy Performance Certificates, to find the most cost-effective route to a higher energy-efficiency rating.”
For information regarding sustainability at Handelsbanken, please see here: https://www.handelsbanken.co.uk/en/about-us/sustainability.