Thursday, 12 July 2018
Earlier this year, new EPC regulations came into force for all landlords (both commercial and domestic). The new legislation states that as of 1st April 2018, landlords must now make sure all their properties have an energy efficiency rating of “E” or above. It is now not possible to take out a new lease on any property which has an EPC of E or below.
Failure to comply with the new regulations can come with a hefty penalty:
- Where a landlord has been in breach for less than three months at the time the penalty notice is served, the enforcement authority may impose a financial penalty of up to £5,000, or of up to 10% of the rateable value of the property (whichever is greater), subject to a maximum financial penalty of £50,000.
- Where a landlord has been in breach for three months or more at the time the penalty notice is served, the enforcement authority may impose a financial penalty of the greater of up to £10,000 or 20% of the rateable value of the property (whichever is greater), up to a maximum of £150,000.
- It also has an impact on when a property can be marketed, losing time in the crucial marketing process.
However, many non-domestic landlords remain unaware of these new regulations and the consequences that non-compliance carries.
If you are concerned you may not be compliant with the recent EPC legislation, you will need to make sure you have up-to-date EPCs with ratings of E or above for all your properties. For any properties that are not rated highly enough, we can advise you of the changes you may need to make to achieve the right rating. If you’d like to know more about how we can assist you with your EPC ratings, give our commercial team a call on 01788 564678.
What is the reason for the legislation?
The Department for Business, Energy & Industrial Strategy explains the reasoning behind the new EPC legislation:
“The energy we use for heating and powering our non-domestic buildings is responsible for around 12% of the UK’s emissions. Around 60% of today’s non-domestic buildings will still exist in 2050, representing around 40-45% of the total floor space. Whilst standards to tackle the performance of new buildings have been in place for some time, minimum standards to drive improvements in the performance of the existing stock through energy efficiency upgrades are essential going forward to tackle energy used and reduce emissions across the non-domestic stock.”
You can find out more detail and guidance on the legislation on the government website, gov.uk.
If you are a landlord and would like to find out how can help and support you, please don’t hesitate to give us a call.
Commercial Department: 01788 564678 (Rugby) or 01827 721380 (Atherstone)
Residential Lettings: 01604 823456