1st April 2023 saw the expansion of the Minimum Energy Efficiency Standards to existing tenancies across the commercial sector.

Current legislation requires a building to meet a minimum ‘E’ rating to be let or to continue to be let, unless an exemption can be proved.

Rishi Sunak has announced that the government plans for the minimum energy efficiency standards to be raised to a ‘C’ by 2025 for residential property has now been scrapped. But what about commercial property and the predicted 2027 date for a ‘C’ rating? The short answer is, we just don’t know yet.

It is also worth bearing in mind that the method for assessing the energy efficiency of a building changed in 2022 to make more appropriate allowances for renewable energy sources. Buildings with non-renewable energy sources which were assessed prior to 2022 might now be facing a different rating.

Our advice to Landlords? Be pro-active. The sustainability agenda is here to stay and with many leases being agreed for 3, 5, 10 years or more, it would be better for Landlords to get ahead of any enforcement dates.

It is probably inevitable that more energy efficient and sustainable buildings will be in higher demand in the long run.

KBW is marketing a number of commercial properties in Gloucestershire and would be pleased to help you secure a building for your business. For more information about KBW’s services, please contact 01242 244744 or email enquiries@kbw.co.uk