As June looms closer and we are faced with European elections again, many do not realise that decisions in Brussels affect the local property industry.

On formation of the coalition government, home information packs were scrapped and it was also planned that energy performance certificates would be stopped, but this was prevented by European law.

Following on from this a recast of the energy performance of buildings directive (2010/31/EU) published in May 2010 sought to clarify certain aspects of the 2002 directive, extended to scope strength in certain divisions and give the public sector a leading role in promoting energy efficiency.

As a result of this, from 2016 any tenant or their representatives asking for their landlords' consent to make reasonable energy efficient improvements cannot be refused and from 2018 the rental of the very worst performing properties (those rated F & G) will be banned through a minimum energy efficiency standard.

From April 2018 legislation changes which would make it unlawful to let residential or commercial properties with an EPC rating of F or G, which will have a significant implication for landlords and occupiers who wish to assign or sublet their properties. It is estimated that approximately 20% of non-domestic properties could be in the F & G Rating brackets and many Victorian properties and those built prior to the 1970s are unlikely to have energy efficiency which will meet this minimum standard.

There are exemptions for properties which are listed, but the volume of listed properties compared with the total number of residential and commercial properties in the country is relatively small.

Sales of property are not caught by this legislation, only properties which are let. There will be certain exemptions which will become clearer as time elapses and also under the green deal the government have made provisions for a financial solution to combat the upfront costs, but loans made available by the government will be repayable.

From a landlord’s point of view, whether it be a residential or commercial property, having more sustainable or energy efficient building is likely to represent a more valuable investment and based on US research based on a sample of twenty thousand properties (checking sanitation) that the more energy efficient buildings commanded rents that were 3 – 5% higher, insurance premiums that were 5% lower and valuations that were 13% bigger than less efficient buildings. Similarly void periods were found to be lower for sustainable buildings.

It will be interesting to see the effect that this has on the UK property industry, but clearly 2016 for residential landlords, and then for all landlords 2018 will be important dates to remember and to ensure that their buildings are not left until the last minute, otherwise it could be illegal to let such properties.

Certainly south Shropshire and north Worcestershire have much old housing and commercial property as stock which will be affected by this legislation.

With the recent report on climate change that has identified that the planet is warming likely due to man’s influence, then energy efficiency measures and compliance with international legislation are likely to increase the burden on landlords and property owners to invest further in their properties with energy-saving measures.

JOHN ANDREWS, DOOLITTLE & DALLEY, KIDDERMINSTER