From 1 April 2018, the rules relating to Energy Performance Certificates for both commercial and residential leases will be changing. If you’re a landlord, you need to know about the proposed changes; below, we briefly consider the new regulations.

The biggest change proposed is the introduction of the minimum EPC rating of ‘E’. This will affect both commercial and residential leases, and will mean that if a property is ‘F’ or ‘G’ rated, problems could arise.

If you’re a landlord and you are granting or renewing a lease on or after 1 April 2018, you will need to make sure that your property meets the minimum EPC rating. If your property does not meet this requirement, then it will be unlawful to enter into a lease and the property will have to be improved to bring the EPC level up to the minimum before you do so.

If you have granted a tenant a long lease which does not fall for renewal for some years then you will nevertheless need to provide your tenant with an EPC certificate as ‘E’ or above by 1 April 2023. Improvements necessary to reach this minimum standard would have to be carried out by then. Breach of the new regulations could attract substantial financial penalties.

If you are concerned about how these rules might affect you, get in touch with our dedicated property departments for further information and advice on both residential and commercial leases.

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