Energy Efficiency: New Regulations from 2018

The Energy Efficiency (Private Rented Property) Regulations 2015 come into force on 1 April 2018.

Privately rented properties which have an F or G energy performance certificate (EPC) rating will be affected. The government believes the Regulations will mean action is required to around 360,000 privately rented properties in England and Wales.

When the Regulations come into force, all privately rented commercial properties in England and Wales must have an EPC rating of at least an E, before a new lease can be granted. It is thought unlikely that the new government will take any steps to alter these requirements. 

Landlords of commercial property would be well-advised to check their EPC certificates now, and take whatever action is required to ensure they obtain a rating of E, as fines under the regulations are pretty unforgiving:

• £50,000 for breaches of under three months; and
• a maximum of £150,000 for breaches of over three months.

Residential properties are affected to a limited extent, and the maximum fine for non-compliance is set much lower at £5,000. This could of course be a punishing figure for landlords of only one or two residential lets. Residential landlords should therefore also be made aware of the changes in good time to take appropriate action. 

Landlords should also be aware that local authorities will be permitted to make information about non-compliance available to the public, which could harm lettings businesses for commercial and residential properties alike.

Samuels has a wealth of experience in providing advice about leaseholds to property owners, landlords and tenants. Contact us today for a free no obligation discussion about any property related matters.