Energy efficiency in the private rented sector is set to become increasingly significant in the next few years, and landlords will find themselves having to pay much closer attention to efficiency ratings stated on Energy Performance Certificates (EPCs).
- From April 2018, it will be illegal to let any property that does not reach minimum efficiency standards (most likely to be an "F" or below on the EPC scale).
- Properties will be un-lettable until their efficiency is improved.
- Research suggests at least 18% of all UK commercial property stock will be affected, so the industry risks nearly a fifth of its commercial buildings becoming obsolete.
- Many of the properties requiring improvement will be historical and/ or listed, and may well require planning permission before works can even begin.
- The clock is ticking, and landlords (and their lenders) are encouraged to review their property portfolios now to consider what improvements might be needed.
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