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Landlords – don’t get caught out by the new EPC regulations

Posted on 20 February 2018 by Janet Keirle

Landlords – don’t get caught out by the new EPC regulations

1st April 2018 sees the start of new minimum requirements for Energy Performance Certificates (EPCs) for both commercial and residential landlords. These requirements are set out in the Minimum Energy Efficiency Standards (MEES).

As from 1st April 2018 ALL new lettings whether commercial or residential must have a minimum EPC rating of E.

Currently, the ratings range from A to G. A being the most energy efficient with G being the least. Any efficiency rating of F or G will mean the property being classed as sub standard.

If the property does not meet the minimum EPC rating of E, then it will be unlawful to create or renew a tenancy or lease. Those creating or renewing a tenancy in breach of the regulations can face being fined up to £150,000.00.

Landlords should act now by reviewing their property portfolios to ensure they are familiar with which properties are within the scope of MEES. If there are any properties to be let with an energy rating of less than E, Landlords may have to carry out the work required to bring the property up to the new minimum energy rating unless an exemption applies (see below). This may involve undertaking work such as installing insulation or new windows. Landlords should also check their leases to ascertain what rights they have in order to carry out the works where there is a tenant in situ.

It is possible to apply for an exemption from the requirements under the new rules but there are strict rules about how to qualify for this. Certain exemptions are in any event only valid for 5 years, not transferrable to new Landlords and must be registered on the central government PRS exemptions register which is due to go live as from 1st April 2020.

The new rules tighten even further as from 2020 for residential properties and 2023 for commercial properties. As from these dates, Landlords must not continue to let sub-standard property to existing tenants or to new tenants unless the PRS exemption applies or the improvements to the property have been made.

For further information on the new regulations, please contact the Commercial Property Team at Pardoes on 01278 457891

Posted in: Commercial Property