EPCs & The Incoming April 2023 Update

What is an EPC?

An EPC gives a property a rating from A (most efficient) to G (least efficient) depending on the energy efficiency of the building. It’s developed from a complex calculation, which looks at several indicators such as the age and type of building, its insulation, heating and the way in which it was constructed. It is valid for 10 years.

The Update and The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015

Also known as MEES Regs 2015, these regulations currently impose bans on landlords renting out non-domestic and domestic properties if they fall below a specified energy rating of ‘E’. This ban can be avoided if a Landlord makes significant energy efficient improvements or are eligible for an exemption.

Its implementation is in stages:

1. from 1 April 2018, these regulations apply upon the granting of a new lease to an existing or new tenant of domestic or non-domestic private rental property
2. from 1 April 2020, these regulations apply to all privately-rented domestic property in scope of the regulations, including where a lease is already in place and a property is occupied by a tenant, and
3. from 1 April 2023, these regulations will apply to all privately-rented non-domestic property in scope of the regulations, including where a lease is already in place and a property is occupied by a tenant

Therefore, this means that Landlords should review their portfolio to identify which properties fall below the requirements.

Landlords who let sub-standard property (EPC bands F and G) and don’t have a valid exemption will be liable to financial penalties and other action by way of enforcement.

If you need advice on your Leases and the financial penalties in light of the above then please get in touch with the Wilson Browne Commercial Property Team.