The Hidden Cost of Energy

From 1 April 2018, the Energy Efficiency in Buildings Regulations 2015 will prohibit the letting of properties which do not meet the prescribed minimum energy performance standards.

All commercial properties let after this date will need to comply with a minimum “E” rating. Some tenants are already only considering properties with a “D” rating or above. Some estimates indicate that nearly 20% of buildings are rated “F” or “G” and there is a strong chance that many of those with a current “E” rating would not achieve the same rating under the 2018 standards.

There is an additional requirement to secure a minimum “E” rating on all commercial properties by April 2023.
Pressure is mounting for landlords to comply. In recent months, lenders have started to refuse loans for the purchase of properties rated at “F” or “G”. Property values are also being impacted as the Royal Institution of Chartered Surveyors requires energy and sustainability issues to be taken into account when valuing properties.

Whilst improvement measures do not necessarily require a massive investment, landlords should be commissioning up to date Energy Performance Certificates to establish the level of investment required and to evaluate the energy performance of their buildings.

Share

Tamzin Mandelli

Partner, Commercial Property

Prior to joining Hart Brown, Tamzin had worked for a local authority and for both regional and national firms. Tamzin is a Partner with over...

Partner, Commercial Property

Tamzin Mandelli

Prior to joining Hart Brown, Tamzin had worked for a local authority and for both regional and national firms.

Tamzin is a Partner with over 23 years' experience and she is based at our Woking office. Tamzin specialises in all aspects of commercial property including the sale and purchase of shops, offices and restaurants, landlord and tenant matters (from granting the new lease, through to the various licences for works, transfers and so on) and dealing with the eventual termination of a lease. She is also experienced at dealing with development work including option agreements and acquisitions.

Hart Brown is recognised in the Legal 500 2024 edition for real estate work in the South East and the entry states “With substantial experience in sales and purchases of properties, landlord and tenant matters and development agreements, Tamzin Mandelli 'provides a high level of service’ and ‘is able to deliver what is needed’.”

What do Tamzin's clients say about her?

"We have just worked on a commercial transaction together, which was by far the most challenging case I have dealt with (for a variety of reasons). Tamzin was extremely efficient and salvaged the transaction multiple times... I highly recommend her!"

“Thank you very much for all of your help and support. It has been an absolute pleasure working with you and hope to do so again in the future!”

"...thank you for your support with X, it's been good fun. Wish you were handling a commercial purchase for me! … lesson learnt, will place with you next time!"

“The service I received was efficient, professional and the members I dealt with both past and present have been helpful…and very personable.”