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Energy efficiency (private rented) regulations – are you ready for 2018?

Are you a Landlord of a Private Rented Domestic or Non Domestic Property – Are you ready for 1 April 2018?

The Energy (Private Rented Properties) Regulations 2015 prohibits the renewal or letting of new leases on Private Rented (PR) Domestic and Non Domestic properties from 1st April 2018 where the Energy Performance Certificate rating is F or G.

Following the 1st April 2018, landlords can be issued with a Penalty Notice resulting in fines not exceeding for Domestic (PR) and up to £150,000 for Non Domestic (PR) properties for any renewed or new lease agreements let on F and G rated properties. Depending on when the EPC  was undertaken ratings of D and E may also be affected.

In 2020 and 2023 the regulations will extend to existing leases on F and G rated properties for Domestic (PR) and Non Domestic (PR) respectively.

We highly recommend that landlords obtain professional advice to establish the extent of their liabilities under the new regulations.

Our Experience 

Ridge is a ‘Top 30’ award-winning multi-discipline property and construction consultancy employing over 500 people, delivering projects worldwide.

Ridge are able to review existing property portfolios and can offer professional advice to clients on the extent of their liabilities under the new regulations and how to plan and prepare for the April 2018 date.

In 2015 the Government published the Energy Efficiency (Private Rented Properties) Regulations. The regulations set out prohibition of commercially let properties with an EPC rating of F and G. The Act is enforceable from the 1st April 2018 on all new commercial lease agreements.

Following on from April 2018, the regulations are to be extended to existing commercial leases from April 2020 for domestic (PR) properties. From April 2023 existing non domestic (PR) properties will also be included.

Landlords that renew or let new leases on F and G rated properties will be liable for penalty notices enforceable by Local Authorities. As well as the possibility of penalty notices including publication on the PRS Exemptions Register, landlords that do not abide by the regulations are likely to face lost rental income and a reduction in property values.

In addition to F and G properties, old EPC with ratings of D and E could also fall into the F and G ratings when the existing EPC’s are renewed. New EPC are currently much more accurate whereas older EPC made more assumptions. Due to these changes old EPC ratings of D and E could fall into F and G ratings.

The property industry is currently assessing the extent of the risk. It is estimated that 19% of commercially let properties fall into F and G rated categories and a former 17% are E rated.

Process for Compliance with Energy Efficiency Regulations 2015


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