Keeping ahead of the game on energy efficiency and broadband

Posted 07/08/2014

Regulations relating to energy efficiency and broadband are tightening for both commercial and residential landlords when it comes to letting premises, with the aim of making the ‘tenant experience’ more effective, efficient and sustainable.

In the last month two consultations have been published by the Department of Energy and Climate Change with the aim of finalising by early 2015 the energy efficiency regulations with which landlords will need to comply. It is expected that premises within the remit of the energy performance certificate (EPC) regulations and with an EPC rating of less than E (approximately 20% of commercial properties fall within bands F and G) will be in breach, requiring landlords to carry out potentially costly updating and remedial works in order to bring the rating of those premises to E or above. The regulations will come into force by 1 April 2018 which leaves some time to prepare; but for landlords with large portfolios or potential lettings lined up, time is precious.

Meanwhile, the EU is requiring its member states to incorporate into national law by 1 January 2016 regulations requiring newly constructed buildings and those subject to major refurbishment to be equipped with a “high-speed-ready in-building physical infrastructure” by 1 January 2017, in order to accommodate high speed electronic communication. For many commercial occupiers, having such infrastructure in place is already a non-negotiable term of any letting deal. However, landlords of properties set for refurbishment and occupied by less sophisticated commercial or residential tenants could find themselves subject to the regulations and having to incorporate additional works into any planned works specification. Developers of new residential and commercial buildings will also find themselves caught, although the precise cut off date for submission of planning applications for development within the regulations is yet to be decided.

The key for landlords is to plan ahead in order to ensure that when the energy efficiency and broadband regulations come into play their premises are fully compliant. Although something of a headache for landlords in the short term, in the long term the regulations will surely pave the way for a better tenant experience and improvement in the quality of premises stock available to occupiers of the future.