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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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There are a few agents in the area but CSJ always had the most properties passing through their books so I decided to use them. Had a few hiccups along the way (though no fault of the agents) but both Chris and Jack handed these problems professionally and persevered to ensure a successful conclusion to the sale of my property.

- J. Tavaris

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