The Energy Performance of Buildings (England and Wales) Regulations 2012 (the ‘Regulations’) state that from 1 April 2018 the requirement to provide an energy performance certificate extends to where a building is to be sold or rented out (subject to certain exemptions).
The change means that no new letting of non-domestic buildings may be effected unless the building has an energy rating of EPC level E or above. This requirement applies to lease renewals, extensions and continuations under the Landlord and Tenant Act 1954. It will become unlawful to let a sub-standard building (unless there is no requirement for an EPC in the first place). In the event that the building is substandard it will be for the landlord to bring that building up to standard before letting.
Wef 1 April 2023 no substandard premises can continue to be let.
The relevant Regulations including provision for enforcement action but there are significant penalties that can be applied for unlawful lettings of up to £50,000 for breaches of three months (the higher of £5000 or 10% of the rateable value) and up to £150,000 (the higher of £10,000 or 20% of the rateable value) for breaches over three months.
For more information on the changes please contact us on 01306 877592 or email firstname.lastname@example.org.