CHARTERED SURVEYOR APPROVED With energy bills skyrocketing and the continuing threat of climate change, there’s never been a better time for landlords to think about improving the energy efficiency of their properties.
The are several legal obligations commercial landlords must meet, as well as some extra steps you can take to reduce the environmental impact of your properties, reduce energy costs for your tenants and support the UK’s Net Zero aspirations.
As well as fire, gas and electrical, and health and safety regulations, there are a growing number of energy efficiency requirements that you need to be aware of.
Currently, all residential and commercial rental properties in the UK must have a valid Energy Performance Certificate and a minimum EPC rating of ‘E’. This Minimum Energy Efficiency Standard applies to all new and existing tenancies. In Scotland, the rules are stricter, with all new private tenancies requiring a minimum rating of ‘D’.
If the Energy Performance Certificate for a property is not valid or it does not have a minimum ‘E’ rating, you cannot legally let the property to tenants. All tenants must also be given a copy of the EPC for the property when they move in.
The current Minimum Energy Efficiency Standards are due to be tightened for landlords in England and Wales in the coming years. Rental properties will need a minimum EPC rating of ‘C’ for new tenancies by 2025, while properties with existing tenants will need to reach the same standard by 2028.
In Scotland, all privately rented properties must have a minimum EPC rating of ‘C’ by 2025 where it’s ‘technically feasible and cost-effective’. All remaining properties must achieve at least a ‘C’ rating by 2028.
Grants are available from local authorities, government and energy companies to help you make the required energy improvements. The following measures can all help:
If you’re a landlord of a commercial property, TM44 inspections are something you need to be aware of. They have been a legal requirement since 2011 for buildings with air conditioning systems that have a combined cooling output of 12kW or more.
The inspections are required every five years and provide you with information about how adequate and effective your air conditioning systems are and how you could use them in a more energy-efficient way. You can be fined £300 if you don’t have an up-to-date air conditioning inspection report.
Various legislation has been put in place to reduce the emission of fluorinated greenhouse gases, also known as F-gases. F-gases not only contribute to global warming but they can also stay in the atmosphere for hundreds of years.
To reduce the amount of F-gas leaks from air conditioning units, commercial landlords must ensure that units containing more than five tonnes of CO2 are leak-checked every year. Air conditioning systems containing more than 50 tonnes of CO2 should be checked every six months.
To comply with the legislation, you should keep records of when leak checks have been carried out and the results. Landlords must also carry out regular inspections of other equipment in their properties that contain fluorinated gases, including heat pumps and refrigeration units. Your records must be available for inspection when required.
At Eddisons, we manage all kinds of commercial properties and deliver a comprehensive service that ensures your legal obligations are met while minimising costs for the occupiers. Find out more about our commercial property management services and get in touch to discuss your requirements.
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