There have been so many green initiatives from the UK government that it can be hard for companies owning or occupying property to work out what is really going to affect them and their bottom line. We are of the view that UK property owners and many occupiers are gradually going to implement more energy efficiency measures in their buildings. Some of the highest profile corporate occupiers have on-going programmes for reducing power consumption and improving their impact on the environment but others may be persuaded by the costs savings or required by some of these new laws and regulations to turn green (or at least pale green).
EPC Ratings - Investors of buildings which are let to multiple occupiers or have a long term tenant in them may not think of carrying out works to improve the energy efficiency of the building unless these are recoverable under their service charge provisions. Not all service charge clauses allow for the costs of improvements to be recovered.
However carrying out energy efficient improvements may help owners avoid the looming issue of buildings no longer being lettable where they have a low EPC rating. We posted on this topic back in April 2012 and it remains the case that from April 2018, it will be unlawful to rent out a residential or business property that does not reach a minimum energy efficiency standard (expected to be EPC rating 'E'). It now appears that even pre-existing lettings might become unlawful in April 2018 but we await draft Regulations to be sure.
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