Date: 20th May 2008
Phil on EPCs
"Once EPCs are applied to new leases and sales of existing buildings, new occupiers will be able to compare the eco efficiencies of properties.
"In the medium to long term this will encourage property owners to seek eco efficient solutions to new build and refurbishment schemes, especially as an inefficient building may have a negative effect on price.
"For example, tenants may demand lower rents, caps on service charges or apportion liability to landlords for costs of improvements required by future legislation - especially with today's market conditions.
"In the short term the cost of EPCs will inevitably fall upon landlords. With many committed to the Code for Leasing Business Premises and the Service Charge Code it will be hard to justify passing on any of the costs of providing EPCs for their properties without tenants crying foul.
"In addition, existing tenants should keep a keen eye on their service charges as landlords may attempt to pass the costs of EPCs onto them."