In July, proposed government amendments to the Energy Bill left some commercial property landlords confused, resulting in the Royal Institution of Chartered Surveyors (RICS) sending a letter to 10 Downing St, seeking clarity.
The queries related to the Green Deal, a government initiative. At the heart of the Green Deal is a drive to improve energy efficiency in properties. Measures such as insulating walls or installing double glazing were recommended to ensure residential and commercial property meets a standard, entitled an E grade, by 1 April 2018.
Landlords have been informed that after this date it will be illegal to let any residential or commercial property lacking a sufficient E grade status. This is of course good news for the environment, but without absolute clarity this requirement has caused some raised eyebrows.
The RICS, which represents and regulates property and surveying companies in the UK, drew attention to the wording of this deadline as being ‘no later than 2018’. There were concerns that this left open the option of bringing forward the changes, risking more pressure on the commercial property industry.
Definition was also sought regarding how different types of commercial property would be treated in the regulations, such as industrial property or buildings with a listed status.
The RICS has now received a reply from the Department of Energy and Climate Change (DECC).
Greg Barker, minister at the DECC, writes that the deadline is open to flexibility in case ‘the sector is not responding voluntarily to the Green Deal’, in which case ‘we could consider earlier regulatory action’.
With regard to different commercial property categories, he states: ‘it is likely that certain types of industrial and agricultural buildings will be exempt’.
The letter, available on the RICS site, closes with an offer to work with the RICS to help the commercial property industry manage and implement these changes. More detailed legislation is expected to be announced in the autumn.
