From 1 April 2018, landlords of non-domestic private rented properties (including public sector landlords) may not grant a tenancy to new or existing tenants if their property has a rating of band F or G as shown on a valid Energy Performance Certificate (EPC) for the property.
From 1 April 2023, landlords must not continue letting a non-domestic property which is already let if that property has an EPC rating of band F or G.
The penalties which could be applied to the landlord if there are found to be non-compliant are:
- Less than three months in breach – Up to either £5,000 or 10% of the rateable value to a maximum of £50,000, whichever is the greater
- More than three months in breach – Up to either £10,000 or 20% of the rateable value to a maximum of £150,000, whichever is the greater
What we can do to help
Through our Savings Opportunities Report Tool (SORT) we can advise where improvements can be made to improve an EPC rating – If there is no valid commercial EPC or it is rated F or worse and the property lease is due for renewal then action is required to implement energy improvements to the property.
If the EPC is rated as an E and will still be valid at the time of the next lease renewal then there is no immediate need to address. However, from April 2023 all leased properties with a valid EPC must have a rating of E or better so plan now for the inevitable. Just because it is E now does not mean it will be at the next EPC renewal.
Commercial EPCs are valid for 10 years from when issued.
This service can be added on to an energy audit with the SORT report. We are able to assess a building’s current EPC level and determine, if possible, how to improve it. This is particularly important for buildings that have a target to improve their EPC by a certain date.
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