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After what seemed to be an eternity of uncertainty, the 2018 EPC regulation
changes have been finalised.
These EPC changes mean it will be unlawful to let or lease a residential or
commercial property with an EPC rating of F or G. Here are 7 things you need to
know about the changes.
1. The regulations surrounding Energy Performance Certificates are
changing on 1 April 2018
This has been a long-standing concern of the industry with uncertainty amongst
agents, landlords, tenants and energy assessors as to when these changes would
come into effect and just what the implications of these changes would mean for all
of those involved. The date is set for 1st April 2018.
2. The EPC changes affect both residential and commercial property
in the Private Rented Sector
As expected, these new Minimum Energy Efficiency Standards (MEES) will apply to
both the domestic and non-domestic sides of the PRS meaning that whether a
landlord is letting out a commercial property or a house to a tenant, it could be
unlawful to do so should the building not meet these new minimum EPC
requirements.
3. The Minimum Energy Efficiency Standard for non-domestic
(commercial) buildings is an EPC rating of E
It is our understanding that this new rating will be based on C02 emissions for
commercial property, this is the EPC graph displayed on the first page of the
commercial energy efficiency certificate. Read the official DECC Government report
for Non-Domestic buildings here.
4. The Minimum Energy Efficiency Standard for domestic (residential)
buildings is an EPC rating of E
It is our understanding that this new rating will be based on Fuel costs rather than
C02 emissions for domestic property. This is the EPC graph displayed on the first
page of the energy certificate. Read the official DECC Government report for
Domestic dwellings here.
5. The EPC regulation changes are about the energy efficiency rating
and that, if renting out a property, an F or G rating could be
problematic.
Potential issues could arise after 1 April 2018 when trying to let a house/flat or renew
a commercial lease with an EPC rating worse than an E.
For the period Q1 2008 – Q1 2015, 35% of Non-Domestic buildings which had an
EPC survey carried out were achieving an E, F, or G rating. For the same period,
26% of Domestic properties achieved an E, F or G rating. This official Government
data suggests that a significant proportion of the UK building stock could be affected
by the new energy performance regulations.
6. These new Minimum Energy Efficiency Standards (MEES) were
released by the Department of Energy and Climate Change on 22nd
July 2014 and confirmed on 5 February 2015.
The Government considered the views of a variety of individuals and organisations
across England and Wales on the issues surrounding EPCs before deciding on the
details of the new regulations which are designed to help the Government meet their
obligations set out in the Energy Act 2011 to improve the energy efficiency of
property within the privately rented sector.
7. The new EPC regulations require eligible properties to be improved
to acheive a rating of E or better, before they can be rented out
The new regulations apply to Non-domestic property, defined by the Energy Act
2011 as any property let on a tenancy, which is not a dwelling. All commercial
property types from A1 – D2 usage class are in scope of the regulations, with the
exception of those exempt from existing Energy Performance Certificate (EPC)
regulations.
The regulations apply to Domestic property, defined in section 42 of the Energy Act
2011 as properties let under an assured tenancy for the purposes of the Housing Act
1998, or a tenancy which is a regulated tenancy for the purposes of the Rent Act
1977. There are also however, some exceptions where a domestic property would
be exempt from requiring an EPC.
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