With less than 12 months to go before the Government’s new energy bill comes into effect, Ideal Commercial Boilers is urging heating and maintenance contractors to act now to get their clients up to standard and avoid lost revenues.
From 1 April 2018 energy efficiency regulations in non-domestic buildings will mean that landlords of non-domestic rented properties – including public sector landlords – cannot grant a tenancy to new or existing tenants if their property has an EPC rating below E. And, from 1 April 2023, landlords must not continue letting a non-domestic property if that property has an EPC rating of band F or G.
A report from global real estate services firm Cushman & Wakefield* estimates that nearly 20 per cent of commercial property buildings in England and Wales could fall short of new Government energy standards due to come into effect next year.
Darren Finley, Chief Commercial Officer at Ideal Commercial Boilers, said: “With the new energy efficiency legislation less than a year away, it is important to act now rather than wait for the changes to come into force.
“Commercial landlords and businesses need to take a proactive approach to their heating installations and maintenance strategies. Contractors should be encouraging their clients to act now to prevent properties from becoming a liability rather than an investment. This is a great opportunity for contractors to deepen their client relationships by providing advice that will ensure commercial properties continue to generate rental revenue.
“While replacing an inefficient boiler with an efficient one is the obvious solution, we would also urge contractors to use it as a chance to reiterate the benefits of routine inspection protecting the whole heating system, encouraging clients to consider preventative maintenance, monitoring gas bills, introducing controls and water treatment.”
Property owners run the risk of their assets decreasing in value if they don’t make the right improvements now. Proactive contractors have the opportunity to talk to their clients in this sector about their older boilers and switching them out ahead of the change through a planned maintenance strategy.
There is mounting pressure to meet the new energy standards, particularly where tenancies are due for renewal in the first quarter of 2018. Commercial landlords who are still heating their buildings with older boilers and inefficient systems, will end up losing out.
Your local Ideal Commercial Boilers BDM can tell you more about their range of energy efficient options. Click here to find their details.