Take steps to improve energy efficient of commercial and private property

Published February 28th, 2017

Landlords and asset managers with commercial and residential properties are being reminded of additional responsibilities they have with regard to the energy efficiency of let properties.

The Energy Act 2011 states that buildings that do not meet the minimum energy performance standard will not be allowed to be let as from 2018 until they have been upgraded. The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 make it unlawful for properties with F or G Energy Performance Certificates (EPC) to be let without implementing cost-effective energy efficiency improvements or fulfilling an exemption criterion (such as being Listed).

From April 1, 2018, all rented property (both domestic and non-domestic) which is to be let must have an EPC rating of at least “E”. This also applies to all renewal tenancies to the same tenant for the same property on or after April 1, 2018.

From April 1, 2020, all domestic property (including existing tenancies) must have the minimum E rating. Non-domestic properties have until April 1, 2023 (including existing tenancies) to ensure they meet the E rating.

“Although there is one year to go before the ‘E’ Rating obligation comes into force for new tenancies we are advising our property owning clients to take steps to upgrade their properties now as potential tenants are tending to avoid lower energy grade properties,” said Graham Bowcock, a partner at Berrys in Cheshire.

“Banks too are conscious of the regulations; mortgage valuers are obliged to report on the property’s EPC band and the implications if the banding is F or G.  Arguably tenants may be less interested in properties with low EPC bands due to increased heating and running costs.  This may make certain properties less attractive for future sale or letting, irrespective of the legal requirement.”

Property owners selling or renting residential or commercial properties failing to meet the legislation could end up with a property on their hands and/or face being fined up to £150,000.

The likely cost of improving a property’s EPC will depend on many factors including the age and type of building and could range from a costly new boiler and heating installation or an air conditioning refurbishment to, at the other end of the scale, a simple change of light bulbs and insulating the roof space.

For further information contact Graham Bowcock at Berrys on 01606 49200  email




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