NON-DOMESTIC ENERGY EFFICIENCY REGULATIONS: B GRADE BY 2030

From 1st April 2023, it became unlawful to continue to lease a commercial property with an EPC grade F or G unless certain exemptions apply. Energy Performance Certificates (EPC) rate how energy efficient your building is; using grades ‘A’ to ‘G’ (with ‘A’ being the most efficient). The regulations will be amended  in the near future requiring landlords of non-domestic buildings to have secured a C rated EPC certificate by 2027 and B rated by 2030 to continue letting the property. 

A summary of the key points of the current legislation can be seen below:

EPC Regulations – Non Domestic
Key points
Scope Non-domestic private rented sector in England and Wales
Minimum Standard E Rating on EPC
Application 1st April 2018 – granting of new lease to new or existing tenant
1st April 2023 – All privately rented properties in the scope of the regulations
Restrictions on Improvements Not cost effective on 7 year payback
Cannot gain consent for works from tenant, lender or superior landlord
Expert states that measure will reduce property value by 5% or more
Wall insulation will damage the property
Enforcement Local authority
Exemptions Exemptions to be recorded on register
PENALTIES
Providing misleading information Financial penalty not exceeding £5,000 and publication of non-compliance
Renting out a non-compliant property for less than 3 months 10% of rateable value with a minimum penalty of £5,000 and a maximum penalty of £50,000 and publication of non-compliance
Renting out a non-compliant property for more than 3 months 20% of rateable value with a minimum penalty of £10,000 and a maximum penalty of £150,000 and publication of non-compliance

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