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From April 2023, UK landlords will not be able to grant or renew a policy for a tenant if their commercial property has an EPC rating of F or lower. This applies if you rent, sell or construct a property larger than 50m2. Fines for continuing to let a property from this date will amount to a minimum of £5,000, up to £150,000. And it doesn’t stop there. Commercial properties have to achieve a C rating by 2027 and a B by 2030.

So what do commercial property landlords need to do in order to meet these targets? At GJS Dillon our recommendation would be to start planning now. Given the increasing cost of materials and labour, it would be advisable to make the necessary changes to achieve a Grade B rating now and avoid hurdles further down the line.

The first step would be to speak to an accredited assessor who will be able to provide an up to date grading on your commercial property. This will help to establish priorities for any work that needs to be carried out.

When it comes to improving the energy efficiency of a building, there are specific areas that need to be focused on including:

Structure

Complete alteration of the building is unrealistic but if there are gaps in the structure of the building these need to be filled. If insulation has already been used, for example in roofs, then this can be replaced with that of better quality material where possible.

Windows and glazing

If double glazing is not already installed then undertake this as a priority. An assessor will enable you to establish where the leaks are around the doors and windows so these can be fixed. If the building is made up of a lot of glass, this is a common source of heat loss and this needs to be counteracted by making other changes that can be achieved such as improved ventilation.

Energy

Heating, ventilation and air conditioning is often the largest consumer of energy in a building. Improvements can be made by ensuring that the temperature and timing controls are operating at optimum levels. Boilers should be replaced with condensing boilers and ventilation optimised. It is best to reduce energy use and increase efficiency as much as possible before considering renewables. Solar PV is recommended but it should be remembered that it is extremely heavy and in some cases, buildings will need to be adapted to support the panels. Given current events in Ukraine, and the effect this has had on energy prices, many will be considering relying solely on electricity as a power source. It is important however that consideration is given to capacity by consulting with the UK Power Network and allow time for planning the switch over.

Lighting

One of the quickest ways to improve your EPC is by switching to energy-efficient lighting. LED is the best option and timer and motion sensors can help to cut down usage.

These are just some of the actions that commercial landlords and owners can take to reduce their EPC rating. For further information contact Mike Sutton, GJS Dillon’s Director of Commercial Building Surveying on 01905 676169 or mikesutton@gjsdillon.co.uk