Energy Efficiency of Let Buildings

29 April 2015

With effect from April 2018, as part of the EU Energy Efficiency Directive, there are new rules regarding the energy efficiency of commercial buildings. As a result, if you have converted farm buildings into office space or holiday lets, these properties will need an Energy Performance Certificate (EPC) rating E or above.

This applies to properties larger than 50 square metres. Newly constructed buildings already require an EPC when they are sold or rented out, but the previous rules did not apply a minimum standard. If a building you own has an EPC rating below E, then when you change tenant, the building may no longer be eligible for let. There has even been a suggestion that this level may reduce further to a grade D in the future.

Some “quick fixes” that may be possible to increase the energy efficiency of the buildings include:

  • Additional insulation
  • LED lighting
  • Solar panels
  • Improved boiler efficiency

However, these can be either costly or just impractical depending on the building concerned. Whatever you need to do, it is worth thinking about now and looking round at possible solutions.

Before undertaking any major capital investment speak to us at Green and Co to make sure that you have advice on the tax implications of any actions.

Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.

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