The government announcement on 20 September 2023 has derailed several climate change commitments including in relation to reducing carbon emissions from residential properties. The argument is that this relieves some financial burden for property owners. However, commentators suggest the U-turn on EPCs not only stores problems for the climate crisis but also creates a longer term financial pressure, as properties that are energy poor increase household bills.
But what about the commercial sector? So far, no change.
Since April this year landlords of commercial properties must meet a minimum EPC standard of E for new leases, renewals and existing leases. Landlords are prohibited from continuing to let properties that have an EPC rating below E, and to continue to let in these circumstances means the landlord will be subject to penalties (unless one of the 6 exemptions are met). Proposals are still being discussed to require a higher EPC rating from 2027.
Despite the government’s U-turn on many of its climate commitments the message for commercial landlords is not to hit pause on net zero – keep going! Not only to ensure the current regulations are met but also to strive to continue to improve the energy efficiency of buildings – improving economic efficiency for landlords and tenants, and supporting a positive change for the climate.
Our Stepping Stones to Sustainability series offers commercial landlords 5 achievable steps to help them reduce their environmental impact, and meet their sustainability targets. If you want to discuss how our Real Estate team can help, get in touch.