EPC’s and Property Value… Why Energy Performance Certificates (EPC’s) will effect the value of your business
Energy Performance Certificates (EPC’s) have been common place within property transactions for nearly a decade now, following their implementation in 2007 (domestic) and 2008 (non-domestic), but changes ahead place a greater importance on these ratings.
The energy act 2011 contains proposals for the minimum energy standards, coming into force from April 2018. These minimum energy standards would make it unlawful to let properties falling into the lowest EPC bands of F and G.
The EPC rates a property for energy efficiency from A to G (with A been most efficient). Mic Burrows from Nationwide Energy Consultancy commented ‘It is estimated nearly 20% of non-domestic properties currently fall into an F or G band. This will have significant implications for owners, agents and occupiers who wish to sub-let properties, forcing them to review the energy efficiency of their properties, and take appropriate action to make the necessary improvements to bring them within the minimum energy standards.’
Nationwide Energy Consultancy are well respected within the industry and provide an enhanced site specific energy report along with the EPC. This provides clarity as to the legal obligations of a commercial property. Mic also commented ‘Many clients are requesting me to revisit them because of the 2018 legislation. It is clear that the value of a property will be reduced if it is in band F or G. Not only will they not be able to let such a property, but with little chance of income there will be no investment value to the property.’
All is not lost for owners of a property whose EPC falls within the F or G band. With a site specific energy report areas that can be improved in energy efficiency are identified and with a little investment the ranking of the business can be improved.