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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