Climate change and changes to commercial property
4th Jan 2008
At present there is a great deal of emphasis on climate change and how we can all do our bit to reduce our carbon emissions.
One of the ways in which the Government and the EU are looking to deal with climate change is by reducing emissions through better efficiency in buildings.
The Government’s mechanism for achieving this is to introduce Energy Performance Certificates in relation to commercial properties.
From April 6 this year Energy Performance Certificates will be required for construction, sale or rent of all commercial properties that are over 10,000 square meters.
From July 1 this year, Energy Performance Certificates will be required for the construction or rent of commercial properties that are over 2,500 square meters.
The certificates will contain information about the energy efficiency of a building and include an asset rating of the building.
The asset rating indicates the energy performance of the building’s fabric and its services calculated using standardised energy usage patterns.
The asset rating is expressed on a scale from A to G. Assessors are likely to look at factors such as the thermal characteristics of the building, heating and hot water systems, air conditioning, artificial ventilation and built-in lighting installations.
If a building is made up of separate commercial units but has a common heating system one Energy Performance Certificate can be issued for the whole building.
When a seller or a landlord is required to provide an Energy Performance Certificate it must be accompanied by a recommendation report.
This report will contain suggestions for the improvement of the energy performance of the building and is issued by the energy assessor who has produced the certificate.
There is an obligation on the seller or the landlord to provide a certificate and a recommendation report free of charge at the earliest opportunity.
Some buildings which will be exempt from Energy Performance Certificates, including:
- Places of worship
- Stand alone buildings that are less than 50 square meters (except for dwellings)
- Temporary buildings with a planned time use of two years or less
- Particular buildings with a low energy demand, for example, barns.
In some circumstances buildings to be demolished are exempt from requiring a certificate.
An Energy Performance Certificate is not required for any (off-plan) sales or letting before a building under construction is completed.
Any landlords or owners of commercial property are advised to seek advice if they are unsure about obtaining an Energy Performance Certificate in advance of the new rule coming into force.
* Nagina Hussain is a solicitor specialising in commercial property with Blackett Hart & Pratt Solicitors LLP in Durham. She can be contacted on 0191-384 0840.
Author: Nagina Hussain, Solicitor (NaginaH@bhplaw.co.uk)
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