With the recent postponement to Grade B EPC requirements, Paul Fairlamb explains why energy efficiency commercial properties are still crucial long term
In a recent announcement, Claire Coutinho, the Secretary of State for the Department of Energy Security and Net Zero (DESNZ), confirmed a significant shift in the timeline for commercial property landlords to achieve a Grade B Energy Performance Certificate (EPC).
The initial mandate to reach this grade by 2025 has been scrapped, with rumours of a new deadline being set for 2030. This decision has stirred mixed reactions, raising questions about the future of energy efficiency in commercial property.
The Grade B EPC requirement, a cornerstone of the UK’s efforts to combat climate change and attain net zero, aimed to drive improvements in the energy efficiency of commercial properties. However, the postponement of this target has sparked concerns among environmental advocates and industry experts alike.
While the decision to extend the deadline may provide some relief for landlords facing financial constraints, it also risks slowing down progress towards a more sustainable built environment.
The move to postpone the target reflects a delicate balancing act between environmental ambitions and economic realities. Many commercial property owners have expressed difficulties in meeting the stringent requirements within the original timeframe, citing challenges such as high upfront costs and limited access to suitable technologies.
However, environmental campaigners have voiced their disappointment, warning that delaying the Grade B EPC target could undermine efforts to curb greenhouse gas emissions and mitigate climate change. They argue that the built environment, including commercial properties, plays a crucial role in achieving net-zero carbon emissions and that any postponement sends the wrong signal about the urgency of addressing climate-related challenges.
While compliance with EPC standards is essential, it is equally vital for landlords to prioritise energy-saving measures to futureproof their properties and minimise risks associated with climate change.
Even though the deadline for achieving Grade B EPC rating has been extended, landlords should not lose sight of the long-term benefits of energy efficiency. Improving energy performance not only reduces operating costs but also enhances the attractiveness of properties to tenants and investors.
There are also much broader implications for commercial property values. Buildings with lower energy performance ratings may face diminished market appeal and could experience depreciation in capital value over time. As investors increasingly prioritise sustainability and environmental considerations, properties with higher energy efficiency ratings are likely to command premium prices and enjoy greater resilience in the face of regulatory changes and market fluctuations.
In light of these considerations, stakeholders across the commercial property sector are urged to adopt a proactive approach to energy efficiency. This entails not only meeting regulatory requirements but also embracing innovative technologies and sustainable practices to create more resilient and environmentally responsible built environments.
As the (possible) countdown to 2030 begins, the debate surrounding energy efficiency in commercial properties is set to intensify. While the postponement of the Grade B EPC target offers a reprieve for landlords, it also underscores the need for concerted action to accelerate progress towards a greener and more sustainable future. Balancing economic imperatives with environmental objectives remains a critical challenge, one that requires collaboration and commitment from all stakeholders involved.
Paul is an experienced commercial property surveyor dealing with property management, sales and lettings, lease renewals and rent reviews across a wide range of property types including retail, industrial and office property.
Email paul.fairlamb@youngsrps.com
www. youngsrps.com Ju