It's not just about saving energy
It might sound innocuous, but from 1st April 2018 it will be unlawful to grant new leases or renew existing ones of residential or commercial property with an EPC rating of less than E unless it is registered as an exemption.
From April 2023 it will apply to all existing commercial leases.
If the property is not brought up to a sufficient rating by the landlord carrying out works, they will face a minimum penalty of £5,000, and a maximum of £150,000.
Bear in mind this will also apply to any tenants wanting to sublet their lease when their circumstances change.
This could have a significant impact on rent negotiations, not only for new leases, but also tenants coming up to break clauses or lease renewal. They may be occupying a property that is an F or G rating, and use that to their advantage in negotiations.
OF ALL REGISTERED EPC'S, APPROXIMATELY 30% ARE AN F OR G RATING
If you are not up to speed with the regulations, whether as a landlord or tenant, and need some help to work out your strategy, please contact us.