Government has issued guidance to Landlords setting out minimum energy efficiency standards for business premises to be let out. Further guidance can be found:
In summary, when leasing out a subject property it is required to meet a minimum assessment standard of E or better (with some exceptions as set out within the guidance) with fines enforceable of up to £5,000.
In the event your property does not meet the minimum required standards you are not allowed to lease the premises out or transact until necessary upgrade works are carried out and the property is reassessed or an exemption certificate is secured. There is currently a cap to improvement works of £3,500 beyond which an ‘all improvements made’ exemption can be secured.
If standards are below E, Keppie Massie will require either provision of suitable exemption certificates or necessary works to be carried out prior to facilitating a letting.
On sale transactions we also recommend appropriate remedies are considered as a poor EPC assessment can have a detrimental impact upon sourcing finance arrangements and thus the time taken to sell and the end realised price.