In recent months, Loveitts Commercial and Loveitts Commercial Management have merged, recognising the natural synergy across these previously independent departments to create a new team that includes five Chartered Surveyors (4 being RICS Registered Valuers) together with five Property Managers and significant back of office support staff.
One of the challenges currently faced by the new team is the management of increasingly demanding EPC standards for commercial property, which has implications for all property owners, particularly for Landlords who lease their premises, where a current minimum E EPC rating is required to facilitate a letting. Specifically, it should be recognised that there can be very significant consequences for any infringement of the current rules. Somewhat frighteningly, if a Commercial Landlord fails to have a valid EPC certificate, this can result in fines of up to £150,000!!
The current EPC standards are nothing to what is proposed for the future. Minimum Energy Efficiency Standards (MEES) require all let properties to have a minimum D rated EPC by 2025 (regardless) with a minimum C rating needed by 2027 and a B rating by 2030!! These requirements will inevitably necessitate significant expenditure by many Commercial Landlords to raise the energy performance rating of their stock to achieve the requisite minimum EPC rating to facilitate a letting or otherwise, for others, these changes will be the ‘straw which breaks the camel’s back’ resulting in many owners selling off their commercial stock to relieve themselves of what would otherwise be a very onerous burden to keep their premises let.
There are possible exemptions, and it is for this reason, Commercial Landlords need to engage the best possible expertise to guide them through the current minefield of Commercial Property regulations to meet the new MEES standards from now on. Accordingly, if, as a Landlord, your present managing agent hasn’t already alerted you to these issues, our recommendation would be for you to seek the necessary professional advice on this subject… and quick!! … because when you think about it, 2025 is not all that far away!!