EPC Changes from April 2018 – Important for Landlords

The Energy Act 2011 contains provisions of particular relevance to Residential and Commercial Landlords.

From April 2018, it will be unlawful to let residential or commercial property with an EPC Rating of F or G. These are the lowest two grades of rating for energy efficiency.

The minimum standard will be an EPC Rating of E.

This will not only effect the marketability of future Assured Shorthold Tenancies (AST) and Lease agreements, but can also effect ASTs and Leases already granted.

For example, this change will affect:

1)            subletting and assignment

2)            property valuation and consequently financing and refinancing

3)            rent review

4)            the end of the ASTs and Leases and during the production of the Schedule of Dilapidations

The rules governing the enforcement and exemptions regarding these changes will be part of secondary legislation, with Trading Standards Officers being the primary enforcement organisation.

Residential and Commercial Landlords will need to contact their Surveyors and Property Managers to produce an Energy Efficiency Plan to procure and manage the required works.

Tyndallwoods’ experienced and commercially aware lawyers advise in relation to all areas of residential and commercial property, including finance and property litigation.

For more information, please call 0121 693 2222 or contact us.

Alex Dyer

Trainee Solicitor