Landlord, are you ready for these EPC (Energy Performance Certificate) changes???
These EPC changes are due to come into effect from this April 2018, will mean that it will be unlawful to let or lease a residential or commercial property with a POOR rating. There will be a requirement for any properties let in the private sector to have a minimum EPC rating of E. Find details below:
1 – Both commercial and residential properties will be affected under these new rules, it will be mainly enforced for new lets and renewals of tenancies with effect from this April 2018, but there might be some exemptions.
2 – Non domestic / domestic buildings will be required to reach an EPC RATING OF E. This will be based on CO2 emissions for the property.
3 – UK building stock could face several problems. For properties unable to reach rating of “E” on the EPC scale. Landlords with substandard properties will have to carry out works to improve the EPC to a rating of E of above or face penalties of up to £4000. However, only appropriate permissible and cost – effective improvements will be required under the regulations.
Landlords will be eligible for an exemption from reaching the minimum standard where they can provide evidence that one of the following applies:
- Devaluation: The required improvements will either cause damage or reduce the value of the property by 5% or more.
- Consent: It is not possible to gain the consent for the works to be completed from third party such as a lender, freeholder or sitting tenant.
- Cost: The identified improvement measures are not cost-effective, either within a seven year payback, or under the Green Deal’s Golden Rule.
The exemption will last for up to five years and must be pre-registered on a central register for a landlord to rely on it.
Obtain legal advice from our professional team: - can advise you on all legal aspects of your transaction, including whether you will be in breach of the new regulations.
Does your property have an up to date EPC? You can check : https://www.epcregister.com/ and if not, we can provide you with an EPC.
For further information and consultancy contact us 02089031002. Viveca Baguandas