Why a Commercial EPC Matters for Manchester Businesses

In 2007, legislation was passed that introduced the Commercial Energy Performance Certificate (EPC) in the United Kingdom. All commercial buildings in Manchester require an energy assessment for every, build, sale and rental.

This guide will show you how to use the EPC to your advantage. There is a push towards sustainability in Manchester, make a Non Domestic EPC is more than just something you need. It will help to improve the energy efficiency of your building and make it more attractive to tenants or buyers.

A Legal Necessity For Manchester Businesses

A Non Domestic Energy Performance Certificate—which is usually known as a Commercial EPC, is an assessment of your building where the end product is an energy rating for your building. The best rating is a Band A, the worst, Band G.

Once your building has one, the certificate will be valid for 10 years and there is no legal requirement to renew it before this period expires. Even if you make changes to your property.

All business premises need an EPC when one of these three things happens

• When it is built
• When it is marketed for sale
• When it is leased.

Its pretty tricky to get around the regulations as there are checks at every point of a property transaction.

• Building Control require an EPC to sign off a new build or extension
• Sale or letting agents cannot market the property without an EPC
• Solicitors cannot process a sale without an EPC
• Courts will not evict a tenant without an EPC

What Are The Benefits of A Commercial EPC To A Business In Manchester

Most of our clients contract us because they need an EPC. Either to comply with sale or leasing regulations or their lender has asked them to get one.

But there are other benefits that reward the building owner and it's occupiers.

Primarily, the Commercial EPC recommendations report can be used to highlight areas where the building could be improved. Improving the rating of your building in Manchester has a direct impact on energy costs. A higher rating translates to a building being more energy efficient and costing less to operate.

Due to this, buildings with better EPC ratings tend to do better in Manchester's highly competitive commercial property market—which only has a 10% vacancy rate.

If you're leasing your building, you'll attract more, and higher quality tenants. If you're selling a building, a higher commercial EPC score will generate more interest. Businesses have always considered costs as part of buying decisions. More recently, they are also considering the environmental sustainability of their operations too. Many with specific carbon reduction targets. Because of these reasons, these properties usually command a higher value.

Future Proof Your Investment

Currently, commercial lets need to be a minimum of a Band E on the EPC. This will be tightened in the future though. The plan is to raise this minimum to a Band C by 2028.

You'd be forgiven for thinking this only impacts landlords. However, most mortgage providers stipulate these Minimum Energy Efficiency Standards during lending applications too. This is to protect their investment if the borrower defaults. Again, this will have a direct impact on property values.

Manchester City Council are also pushing their own net zero goal. It aims to achieve this 12 years ahead of the central government target and decarbonise Manchester by 2038. It's making funding available to help it's business community with these targets. Businesses in Greater Manchester have been invited apply for the Energy Efficiency Grant. Funded by the UK Shared Prosperity Fund, £5,000 is available to help with the costs of upgrading inefficient services within your business. This could be a heating system, lighting or anything else.

To summarise so far, in Manchester's highly competitive commercial property market put your building one step ahead by improving its energy rating and aligning with the wider business communities goals.

Manchester Commercial EPC Success Story

We recently completed a Commercial EPC for a small solicitors office in Trafford. They were in the process of re-mortgaging their Victorian era office. Their existing EPC from 2016 showed a Band D, but their lender offered a better rate for buildings with a Band C or above.

When we reassessed their property with the latest calculation software, the score improved to the Band C that they needed. The way EPCs are conducted, as well as the software and rules that generate the score are changed frequently. So even without any major upgrades, this property scored more favourably with the latest methods.

The new EPC was supplied to their lender and the re-mortgage was approved with a 0.4% reduction in the interest rate. This shows how just updating a Commercial EPC can directly benefit a business in Manchester without needing expensive upgrades.

Take the Next Step with Your Manchester Commercial EPC

As you can see, a Commercial EPC isn't just a legal requirement for Manchester businesses—it's an opportunity. Whether you need one for a property transaction, are looking to reduce operating costs, or want to secure better lending rates, understanding your building's energy performance is valuable.

Book your Commercial EPC assessment in Manchester today. Give us a call on 01925 699321 for a quick quote, or to discuss how we can help improve your building's energy rating.