2023 EPC challenges for landlords

Karsons Consultancy is a sustainability building consultancy that specialises in providing Environmental, Social, and Governance (ESG) services to commercial property owners and asset managers. Since our birth, we have produced hundreds of Energy Performance Certificates (EPCs) and now advise on EPC+1 budget costs to reach B ratings and Net Zero Carbon Pathway Reports to meet 2050 Carbon Risk Real Estate Monitor (CRREM) standards.

We want to remind our clients that the rules for non-domestic EPC properties are changing and landlords should be prepared for the upcoming deadlines. From April 1st, 2023, landlords will not be able to let buildings with an EPC rating below E, where a valid EPC exists, subject to certain exemptions. Additionally, on April 1st, 2025, landlords will have to register a valid EPC for all commercial let properties, and improvement works would need to be carried out, subject to certain exemptions and a new EPC registered.

We understand that these changes can be overwhelming, which is why we offer a variety of services to help our clients navigate the ever-changing landscape of ESG compliance. Our services include:

• Helping you navigate and understand industry jargon and what they mean for your business.

• Employee wellness: as humans spend 90% of our time indoors, buildings should promote health and wellbeing. Certifications like WELL and Fitwel can support human health indoors and add value to your real estate.

• Providing advice on key considerations to make and features to incorporate when designing and refurbishing your commercial assets to achieve net zero carbon.

• Assisting with developing your ESG strategy, through acquisition and beyond.

• Offering an overview of net zero, BREEAM, WELL, LEED, Fitwel and EPCs, and helping you understand which can work best for your portfolio, fund, and assets.

• Guiding you through the governance that matters and the items that don’t when you need to refurbish and improve your EPC to achieve value for money.

• Providing ESG audit reports at purchase and sale, as since March 2021, asset managers (as well as investors in the financial markets) must classify their funds (or other investment products) depending on their sustainability purpose, in order to ascertain which reporting obligations to fulfil under the Sustainable Finance Disclosure Regulation.

We hope to be of help over the coming months while navigating these changes. If you have any questions or concerns about how these changes may affect your properties, please don't hesitate to contact us at info@karsonsconsulting.com or call us on 020 3282 7605.