LEGAL


Understanding key changes to energy legislation


Cathy Thomas (pictured), Commercial Property Specialist at Banner Jones, looks at recent changes in legislation – and what it could mean for commercial landlords.


New legislation increasing the minimum energy efficiency standards for commercial property has now been implemented, making it unlawful to enter a new lease on a commercial property with an Energy Performance Certificate (EPC) rating of ‘F’ or ‘G’. A commercial property’s EPC shows its current and


potential energy rating, of which a series of features such as roof insulation, wall construction, heating controls, renewable technologies and lighting contribute to its rating. It is estimated that approximately 20% of commercial


properties in the UK fall into this category, and the consequence of the changes coming into effect will make such buildings illegal to let unless they are upgraded to meet the new standards. And while the owner of the property will ultimately be responsible for ensuring the necessary work is carried out to bring it up to the minimum energy rating - or face hefty civil penalties - there are a number of elements to the legislation that landlords and tenants should be aware of.


Any landlord negotiating new commercial lease terms


should bear in mind the energy efficiency changes, as well as the work needed to improve the energy rating, but it may also be possible to share the burden of cost. For example, if the necessary alterations will substantially reduce utility bills, the tenant may view contributing


towards such changes as a necessary investment. And while the legislation implemented is only to affect those currently negotiating a new lease on a commercial property, the


rule will apply to all existing tenancies from April 2020. Therefore, tenants and landlords alike may want to seek advice about


this legislation if they are discussing a new lease contract on a building that requires upgrading.


business network May 2018 69


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80