The property industry is counting down to the introduction of Energy Performance Certificates – the first tranche of which will be required by 6 April 2008. 

Energy Performance Certificates (“EPCs”) are required on the sale or letting of all commercial buildings over 10,000 sq m.  From 1 July 2008, EPCs will be extended to commercial buildings over 2,500 sq m and by 1 October 2008, to all commercial buildings.

In order to comply, it will be necessary to obtain a certificate from an accredited assessor.  Failure to do so could result in fines and damage to company reputations as well as limit the ability of the landlord or occupier to market the space.  The certificate, and accompanying report, will include an energy rating, and provide advice on how to make cost effective improvements to the building to make it more energy efficient.

Once EPCs are in place, owners and landlords are not legally obliged to make any improvements.  However, as Ken Bishop, director of DTZ, explains energy efficient property will make better economic sense in the long-term for landlords and occupiers alike:

“Clearly buildings that are more energy efficient are going to be cheaper for tenants to run, thus buildings with a higher energy rating are expected to stay vacant for shorter periods and less incentives are likely to be required to secure occupiers.”

---