Government Announces New Energy Efficiency Laws: What Next For Landlords and Commercial EPCs?

Nov. 13, 2015 - PRLog -- As part of the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015, all landlords will need to ensure that their properties achieve an energy efficiency rating of B and E or above by April 1st, 2018. If they don’t, they could be penalised and face delays on leasing or renewing the lease on a property until appropriate works are carried out. They must hold a vallid Commerical EPC.

The proposed legislation extends the rules and regulations set out by the Energy Act of 2011, which was designed to improve energy efficiency in rental properties.

Whom Does the New Law Affect?

In short, all landlords who rent a property privately to a tenant – whether that’s a home or a business premises – will be fallible under the laws of the act. They must have a commerical EPC.

All newly-leased properties will need to be ‘E rated’ by 2018; with tenants able to request necessary improvement works from as early as 2016. If an existing lease is already in place, then the deadline for works is slightly longer at 2023.

The single line caveat to the proposed law change is that landlords are required to make these changes unless they can show that ‘it would not be cost effective for them to do so.’

What will be the impact of the new law?

From a positive perspective, the new regulation should improve the over-arching energy efficiency of homes and commercial properties in the UK; which of course is no bad thing.

The bad news for landlords who DON’T conform to the new rules are multiple. Unless properties meet the energy standards on or around April ’18, then they may find the desirability of their properties diminishes accordingly. Rental prices may need to be cut as a consequence.

The law will ultimately be enforced by the relevant local authority who will have the power to issue compliance notices and penalties where required. Non-compliance will result in a hefty fine, with penalties of £10,000 or 20% of the property’s value (whichever is greater), up to a maximum of £150,000, likely.

What should landlords do next about Commerical EPC?

We can outline the wealth of options that are available to you, all whilst working to your budget and with the requirements of the E rating in mind. From solar panels to biomass boilers and heat pumps, we have a wealth of experience in helping landlords just like you to improve the energy efficiency of their properties whilst ultimately creating long-term savings.