Getting your commercial properties ready for new EPC Regulations

With new Energy Performance Certificate Regulations looming from 1 April 2020, property lawyer Simon England looks at what landlords must do to get their properties ready.

The minimum EPC standard required is an E rating or above and applies to any domestic privately-rented property legally required to have an Energy Performance Certificate.

It applies to properties let on certain tenancy agreements including assured shorthold tenancies, regulated tenancies and domestic agricultural tenancies.

This would include private student lettings (although note certain lettings by educational institutions will be exempt).

From 1 April 2018, landlords with properties that fall into those categories may not grant a tenancy to new or existing tenants with an EPC rating of F and G and from 1 April 2020 landlords will not be able to continue letting the property.

Where the landlord wants to continue letting a property which does not meet the minimum standard he will need to ensure that energy efficiency improvements are made in order to meet the minimum E rating.

In certain circumstances, a landlord may be able to claim an exemption, for example where they are unable to obtain the funding to cover the cost of making improvements, or in situations where despite improvements having been made the property remains below the minimum E standard.

In the context of commercial lettings, landlords will need to look carefully at their leases to see if the costs of any improvement works can be passed on to their tenant.

Our team at Harrison Drury can assist if you are unsure on where you stand as a landlord.

For more information on the EPC Regulations and they affect you as a landlord, contact our Property team on 01772 258 321.