The Rental Market is Going Green
In the drive to ensure our built environment is energy efficient, there have been moves to make it illegal to let properties with a poor energy efficiency rating. Legislation set out in the 2011 Energy Act, makes it illegal from 2018 to rent out any property that only achieves a band F or G rating. Furthermore from 2016, it will be illegal to refuse tenants requests to carry out the necessary work to improve the energy performance of F and G rated properties.
This legislation applies to both residential properties and commercial properties. This suggests that approximately 18% of the UK commercial stock will be affected. However, rather than seeing this as a negative, landlords should view this as an opportunity to improve the energy performance of their portfolio, resulting in lower operating expenses and therefore making it more attractive to potential tenants.
There are measures landlords can take to ensure that they avoid any issues, however the sooner this is undertaken the better, as it is likely demand will increase for these services as we approach 2018 risking an increase in costs.
Gary Brandwood, Director of energy savings experts Perfect Sense Energy discusses the impact of legislation; “With this new legislation coming into force it is imperative that landlords take action to improve the energy performance of their properties. We recommend that landlords review their properties and arrange EPC’s for any properties which may not have one. Through this, landlords can identify inefficient properties, and source appropriate methods to improve their energy performance. Landlords may be able to take advantage of enhanced capital allowances or have some of the costs met through Government schemes.”