Commercial property owners urged to check EPC rating

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Commercial property owners in Teesside have ten months to check their EPC rating and secure an energy efficiency rating of E or above, warns property consultancy Sanderson Weatherall.

As of April 1, 2018, landlords will not be able to let commercial premises or renew leases if the EPC rating is lower than an E, as a result of minimum energy standard, introduced in March 2015 by the Energy Efficiency (Private Rented Property, England and Wales) Regulations 2015.

David Fairley, partner at Sanderson Weatherall, is concerned that many EPC certificates may be inaccurate, therefore and many properties in Teesside may actually drop below the required rating.

“Some estimates suggest that over 50% of EPCs completed in the early years used an incorrect default setting in the computer model which generates the rating,” said Fairley.

“During sense checking exercises over the last few years we have come across a number of inaccurate EPCs, particularly those carried out between 2008 and 2011.

“With EPC’s needing to be renewed every ten years, or at the point of the next leasing event, some landlords might be in for a surprise from 2018.

“Checking the EPC rating and understanding the cost and benefit of improvement measures may be worthwhile to prevent possible negative impacts on property values.

“It has been a requirement for all qualifying commercial buildings to have a valid Energy Performance Certificate (EPC) prior to letting or sale, for nearly a decade now, however to date there has been little negative impact of owning a property with a poor EPC rating.

“It will be interesting to see how the regulations affect the market over the next 12 months and how they are enforced but we advise affected landlords to register exemptions ahead of the April 2018 deadline.”

According to the regulations non-compliance of the new standards may result in a fine, to be levied by the local Weights and Measures Authority, and publication of names of those who have fallen foul.

Sanderson Weatherall is a leading national firm of UK Chartered surveyors, property consultants and business asset advisors.

Its Teesside team moved to second floor, 1,532 sq ft space in Roseberry House on Bowesfield Park, Preston Farm, over a year ago – a move which has transformed its property business.

Find out more about Sanderson Weatherall at or give the Teesside team a call on 01642 426900.


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