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How will commercial properties be affected by the Energy Act 2018?

Aimed at creating greater sustainability, the Energy Act is set to be a real catalyst for long term change throughout the United Kingdom. From April 2018, the provisions laid out as part of the Green Deal will be enforced to landlords of commercial property throughout the UK. The legislation will restrict the rental of both residential and commercial properties that fall below an as yet unspecified efficiency standard.

Landlords with tenants contracted beyond 1st April 2023 will be exempt from the legislation until the contract comes to an end, unless a sublease is granted during that time, in which case the law will apply.

Take a look at our latest infographic to gain an understanding of the key legal issues relating to the Energy Act and how it could affect you as a commercial property landlord.

Slater Heelis - Commercial Properties infographic

Transcript of infographic:

How will commercial properties be affected by the energy act in 2018?

The Energy Act is a key part of a UK policy to reduce carbon emissions by 80% before 2050.

Landlord and tenants: Upcoming rights and responsibilities

From April 2016, landlords cannot refuse tenant requests to improve energy efficiency. From April 2018, landlords cannot grant or renew tenancies on properties that do not meet a minimum standard of energy efficiency – an E Energy Performance Certificate (EPC) rating. From April 2023, landlords cannot let properties under existing tenancies if the EPC rating falls below standard.

The government estimates that around 360,000 privately rented properties will be affected. These currently have an F or G Energy Performance Certificate rating.

How to improve the energy efficiency of commercial properties

The Green Deal helps landlords and tenants recognise energy saving improvements that can be made to a property without having to pay all costs up front.

What changes can be made through the Green Deal?

  • Draught proofing
  • Windows
  • External and internal solid wall insulation
  • Loft insulation
  • Boilers
  • Air or ground source heat pumps and solar panels
  • Cavity wall insulation

Factors to be aware of:

  1. The energy bill payer is responsible for the Green Deal repayments
  2. Tenants’ permission is required before taking out a Green Deal
  3. Your permission is required if your tenant wishes to take out a Green Deal
  4. Improvements must be made by Green Deal authorised companies
  5. New tenants must be made aware of the Green Deal and the repayments needed

How to get a Green Deal

  1. Apply for a visit from a Green Deal assessor
  2. The assessor will offer impartial advice on what the most effective measures will be
  3. Green Deal payments will then be attached to the individual property so responsibility can be transferred following changes in ownership

Tip: Carry out work in between leases to avoid disturbances to tenants

Source: https://openideo.com/challenge/renewable-energy/ideas/creating-community-8-infographics-as-posters-for-renewable-energy

If you are a commercial property landlord and you are unsure of what you are required to do in order to meet the new legislative standards, speak to the dedicated commercial property team at Slater Heelis today on 0161 969 3131. Alternatively, complete our contact form and we will call you back within four business hours.

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