Over 19,000 commercial properties may be unfit for occupation following a tightening of energy performance rules, legal firm Search Acumen has warned.
Tighter rules came into force on 1 April, which means that landlords who already have leases need to bring their properties up to an Energy Performance Certificate standard of at least E.
Westminster in London is the local authority with the most leased properties with an F and G rating across the UK, at 488, perhaps due to the historic nature of many of the buildings in the area.
This is followed by Birmingham, at 334; and Nottingham, at 294.
Andy Sommerville, director at Search Acumen, said: “Tightening regulation around energy performance is an essential part of decarbonising our built environment however, inevitably, many commercial landlords will have been caught off guard. Many property owners will need to scramble to retrofit properties and, at a time when purse strings are tight, this may cause some issues.
“However, investment now in high levels of sustainability is essential for future proofing commercial portfolios and ensuring compliance with stricter regulation but also better meeting the needs of occupiers who are more focussed than ever on lowering their carbon footprint and their energy costs.”
Data the government holds on registered EPCs suggests there are currently 19,166 commercial properties for lease in the UK – including offices, shops, hotels, libraries, museums, education and healthcare facilities – with an EPC rated at F or G, below the minimum standard.
An EPC rating of at least E has been required on new leases since 2018.
Property types with the most F and G EPC ratings are offices, with 8,139 properties; retail, with 6,600; and storage and distribution with 1,198 properties.
There are 32 libraries, museums or art galleries that fall below minimum standards, 26 hotels, 219 day care or community centres and 14 hospitals and care homes.
