Landlords, are you prepared for the new EPC changes?

Landlords, are you prepared for the new EPC changes?
From the 1st of April 2018, the Government have proposed legislative changes regarding its Energy Efficiency Standards (EES), effecting landlords of privately rented domestic and non-domestic property.

Landlords will be required to establish a minimum level of Energy Efficiency Standards (EES) and their properties must achieve an energy performance rating of at least a ‘E’ on an Energy Performance Certificate (EPC) before granting a new tenancy to new or existing tenants. These requirements will apply to all private rented properties across England and Wales even where there has been no change in tenancy arrangements.

This means that it will be unlawful to rent a property which breaches the requirements for a minimum ‘E’ rating, unless there is an applicable exemption. A civil penalty fine of up to £4,000 will be imposed for breaches of these regulations.

This could have very substantial implications for landlords, and for occupiers who wish to assign or sublet space, including:

  • Marketability of some properties would become unfeasible unless they were upgraded to meet the minimum standards. It is estimated that approximately 20% of non-domestic properties could be in the ‘F’ & ‘G’ rating brackets.
  • Valuations of such properties could be affected if their marketability is diminished.
  • Rent reviews for properties in this situation could also be affected.

The main aims of these regulations are to:

  • Increase the energy efficiency of the least economically friendly properties, such as those with an EPC rating of ‘F’ or ‘G’.
  • Aim towards achieving the UK’s legislative targets – CO₂ emissions from all buildings must be ‘close to zero’ by 2050.

These legislative changes will come into force for new lets and renewals of tenancies with effect from 1st April 2018 and for all existing tenancies on 1st April 2020. For more information visit the Landlord Guidance website or feel free to give us a call on 0115 956 9452 or email This email address is being protected from spambots. You need JavaScript enabled to view it.
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