RDF Building Ltd wishes to advise our clients of important information which affects all landlords and owners of commercial properties from the 1st of April 2018
The 2018 EPC regulation changes
From 1st April 2018, the minimum energy efficiency standard will be set to E to help reduce CO2 emissions and to ensure tenants live or work in an energy efficient building. Landlords or owners of a commercial property with an EPC rating of F or G must ensure their property meets the Minimum Energy Efficiency Standard (MEES) requirements before a new lease or tenancy is granted.
The 2018 EPC regulation changes will apply upon the granting of a lease to a new tenant, and a lease to an existing tenant.
Minimum Energy Standards for Commercial Landlords
The regulation changes will apply to the non-domestic private rented sector in England and Wales, this will be any property let on a tenancy, which is not a dwelling. It is the landlords responsibility to implement improvement works to ensure their commercial property rating falls between the A – E EPC ratings. Detailed information can be found in this Non-Domestic Landlord Guidance PDF.
Exemptions to the 2018 EPC Regulations
If a landlord believes that their property qualifies for an exemption from the minimum energy efficiency standard, an exemption must be registered on the National PRS Exemptions Register
- If the improvement measures are not cost-effective, and do not pay for themselves within 7 years.
- If the expected financial savings are not equal to or greater than the costs attached to the energy bill.
- If the landlord is unable to obtain the necessary consents from tenants, lenders or superior landlords to install the required energy efficiency improvements.
- If a qualified expert provides evidence that the installation of a relevant measures would devalue the property by more than 5%.
Penalties for a Non-Compliant Commercial Property
If a landlord has not ensured that their commercial property is compliant, or has not sufficiently proved an exemption, then a Local Authority is within its power to serve a compliance notice requesting that further information is sent to them to confirm compliance.
- Less than 3 months of non-compliance: 10% of rateable value, subject to a minimum fine of £5,000 and a maximum fine of £50,000.
- More than 3 months of non-compliance: 20% of rateable value, subject to a minimum fine of £10,000 and a maximum fine of £150,000
- Publication of non-compliance will apply to both timeframe offences.
Energy Efficiency Assessment
If the EPC rating of your commercial property is F or G, an energy efficiency plan should be put in place to make improvements to the building.
RDF Building are here to help and can provide energy efficiency assessments across all commercial sectors, our team of experts will implement and manage any improvement works necessary to ensure EPC compliance across your property portfolio.
To ensure your property is compliant and that you are not at risk please contact a member of our team today.
Call 0113 231 9910