Commercial Landlords: Are you prepared for the EPC changes in April 2018?

The Minimum Efficiency Energy Standards (MEES) regulations come into effect from 1st April 2018 and will apply to all new leases and tenancies granted after that date. The rules will apply to both residential and commercial property lettings.

At present, commercial buildings have an energy efficiency rating which is rated A-G (F and G are the worst performing). The new regulations will introduce a minimum standard of E which means buildings cannot be rented out unless they meet that standard.

In an attempt to reduce Britain’s carbon footprint, from 1 April 2018 landlords must not renew existing tenancies or grant new tenancies if the building has less than the minimum Energy Performance Certificate (EPC) rating of E unless the landlord registers a valid exemption or until the building has been brought up to standard. Failure to comply with the new regulations will leave commercial property landlords facing fines of up to £150,000 per property.

Furthermore non-compliant landlords face reputational damage as one of the sanctions available is a ‘Publication Penalty’ which allows the enforcement authority to publish some details of the landlord’s breach on a publicly accessible register.

For more information and advice, please contact our Commercial Property team on 0113 201 4900 or email commercial.property@emsleys.co.uk.

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