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The South West Specialists

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The EPC – a powerful weapon affecting value and disposal?

The Government’s consultation papers issued at the end of July now provide details about the practical implementation of the Energy Act 2011 and confirm the intent to uphold Minimum Energy Performance Standards (MEPS) for buildings.

So what does this mean and how it will affect you?
As of April 2018, under the Energy Act 2011, it will be illegal to carry out a letting within a building with an EPC rating of F or G. It will be possible to obtain an exemption from the legislation, the options are too detailed to go into here, however they all incur costs and only have a maximum life span of 5 years. A phased introduction looks likely applying the legislation to all existing and new lettings from April 2023. There continues to be questions with no definitive answer as this is still new to the market, with much of the fine detail yet to be set down. However regulations are expected to be in place during 2015. These new details have focused attention on those questions that parties should be thinking about now, and not March 2018.

Landlords
What is going to be the effect on value of not being able to re-let your building ?
Do you know realistic costs of the works that can be done to achieve required improvement ?
Are you able to carry out works and get Tenants to pay a proportion of these through existing leases and service charges ?

Tenants
What will be the cost to your business if you are forced to relocate or are unable to sub-let or assign non-compliant accommodation ?
Is your Landlord able to utilise existing leases to demand you contribute to improvement works, even if you are not guaranteed to be in occupation after April 2018 ?

What do I do now ?
Find out if you have a problem. If you believe that you will want to let accommodation within your property in the next decade get an EPC, know now what you are holding so you can take control. If the rating obtained is E or above, this will guarantee the EPC for the next 10 years. If your rating is below an E then it will give you time to liase with us to rectify the problem in an organised and professional manner.


Contact us for assistance on any of these matters including obtaining an EPC certificate, undertaking a review of the improvements needed to enhance the rating, and providing costs/assessing their viability, advising who is responsible for the costs and providing disposal and valuation advice.

 

Please contact Clare Cochrane on ccochrane@vickeryholman.com for further information.