Two Commercial Property Challenges To Expect In 2025

Here at Burgh Thorpe Solicitors, we have a team of conveyancing experts keeping their fingers on the pulse, to ensure you are protected. In this blog post we would like to help you prepare for the two property challenges in 2025 you need to know about. The first is the changes to sustainability requirements. The second is leasehold reforms.

Sustainability Requirements

Sustainability has been a continuous and growing priority for commercial property transactions. New regulations state that by 2028, all rent commercial properties must meet EPC level C. In addition, by 2030, all rented commercial properties must meet ECP level B by 2030. There will be costs involved in upgrading commercial properties that do not meet these standards This could result in an affect on property valuations and sale negotiations too.

If you are a commercial property landlord, we would recommend that you take the time to assess tour property portfolio now. In addition, plan in those energy efficiency upgrades that your properties require. Delaying on taking action to improve the energy efficiency of your properties could result in higher costs as the deadline comes closer.

If you are buying a commercial property you need to ensure that the property meets the required standards. If it does not, consider negotiating discounts to account for the future upgrades required on the property.

Leasehold Reforms

You should be aware of the Leasehold and Freehold Reform Act of 2024. This act brought in some significant changes to leasehold properties. The key reforms that you need to be prepared for include cheaper lease extensions and extended lease terms of up 990 years. It’s important to be aware of the removal of the controversial ‘marriage value’ too. The aim of the reforms was to simplify processes for leaseholders. However, they may require careful navigation during property transactions.

As a landlord, you need to ensure compliance with the new reforms. This will help to avoid potential complications during the sales process or lease negotiations. If you are a leaseholder, you may now have better options for extending your property lease or through the purchase of freeholds. Our commercial property conveyancers can guide your through these processes.

Need help arranging the legal side of your commercial property? Call our commercial property law solicitors in Peterborough now. We will be happy to offer the advice and guidance you need.