What do the new EPC regulations mean for you?

Energy Performance Certificates are here to stay and the Department for Energy and Climate Change have finalised new EPC regulation changes which are due to take effect from April 2018. These changes mean it will be illegal to let or lease a residential or commercial property with a poor EPC rating. Here are 5 things you need to know about the changes and how they could affect you. 

1. Both Commercial and Residential EPC's will be affected within the private rented sector (PRS). The new energy efficiency requirements will apply to both the domestic and non-domestic sides of the PRS, meaning that whether a landlord is letting out commercial or residential property, it will be unlawful to do so if the building does not meet the new minimum EPC requirements.

2. The minimum Energy Efficiency Standard for Domestic and Non-Domestic buildings will be set at an E EPC rating. Any properties that fall below an E rating on an EPC will be deemed unlawful. The new rating will be based on fuel costs for domestic dwellings and CO2 emissions for commercial property. So long as the minimum E rating is obtained, it is left to the landlord to choose which works need to be carried out. 

3. The new EPC regulations will come into force from 1st April 2018 and will require eligible properties to be improved to a specified minimum standard. This means it's vital all landlords check the EPC rating of their properties and take the correct steps to ensure their property is up to standard. All existing tenancies must conform from 1st April 2020 and a civil penalty of up to £5000 may be imposed for breaches of these new regulations.

4. Landlords will be eligible for an exemption from meeting the minimum standard if their property falls into the following categories: properties with a pre-existing tenant, some historically listed buildings, temporary buildings and residential buildings in use for less than 4 months are exempt. Exemptions will be reviewed after 5 years and you are expected to register your exemption with the Government.

5. As well as the penalties for failing to comply, landlords should also be aware of the benefits of improving the ratings of their properties. Government estimates suggest a higher EPC rating can add to a property's value and act as an attractive pull to tenants looking to save on their energy bills. Most importantly, adhering to these EPC regulations ensures landlords are keeping tenants safe from the associated risks of poor insulation and ineffective heating systems.

Retrieve your property's certificate from the EPC register to check its rating:

Are you a landlord or a tenant with questions? You can contact our property management team by phone (0114 275 8333) or email (info@cactusliving.co.uk) who will be more than happy to help.

Last Updated: 17/08/2017
Author: Cactus Living

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