Poor buildings may be awful, but they aren’t unlawful.
Fact: despite what some people will tell you, it is not unlawful to lease a property that is substandard in its EPC rating.
A substandard building can be exempt if the cost of improving the EPC rating is disproportionate to the cost of the works. While there may be a stigma attached to some exempt buildings, this is by no means true of all such properties. Any risk to value will be influenced by the nature of the building, the quality of its location and, as ever, demand and supply.
Our view is that timing is everything, and the cost & disruption that will be incurred by investors and owners at some points in a building’s lifecycle will be significantly less than at others.
Remember, there is no obligation to renew an expired EPC until a building is re-marketed and if you obtain a new EPC prematurely, you may lose control over the timing of works.
A tactical approach to EPCs and MEES may prevent waste and help owners do the right thing – at the right time.
Talk to Charles Woollam about your long-term ESG strategies.