How low can you go?
Following the introduction of Energy Performance Certificates (EPC’s) on 1 August 2007, the property market has been slow to react to the results shown by them.
With this in mind, the Energy Act 2011 obliges the Government to bring into force measures to improve the energy efficiency of both non-domestic and domestic properties. The easiest way to do this is via the use of EPCs.
The Government is proposing under the current draft Energy Efficiency Regulations 2014 to make it unlawful to:
(i) Grant a new letting from 1 April 2018 for a residential or commercial property where there is an EPC rating of F or G, unless an exemption applies;
(ii) Renew an existing letting from 1 April 2020 for a residential or 1 April 2023 for commercial property, where there is an EPC rating of F or G, unless an exemption applies.
The proposed penalty for failing to comply with the above regulations is a fine of up to £5,000.00. The aim of the regulations is that Landlords will have to carry out improvement works to their properties before they are let out.
A breach of the regulations will not affect the validity or legality of the tenancy itself.
Buyers of properties (where they are proposing to let them out) need to be aware of the proposed regulations. This will also affect current Tenants of commercial properties who want to assign their lease and are required to comply with all statutory obligations, which may mean the Tenant have to carry out the improvement works at their own expense.
Whilst the proposals are just proposals at the minute, they have been drafted without any consultation and may be brought into force as is. It is also likely that the minimum rating of E for and EPC will rise over time.
Hello@LawBlacks.com
0113 207 0000
@lawblacks
Blacks Solicitors LLP
