Sustainability has been one of our core focuses in recent years. Our champion for sustainability and Bristol director, Dan Brooks-Dowsett, has written a short guide to energy efficiency ratings and the updates to the Energy Act 2011, potentially affecting all landlords and tenants in the foreseeable future.
The Energy Act 2011 requires the Secretary of State for Energy and Climate Change to introduce new regulations by 1 April 2018, making it unlawful to let properties in England and Wales that do not meet a prescribed minimum energy performance standard (MEPS). The standard is an energy performance rating of E, or higher, on an Energy Performance Certificate (EPC) produced compliant with the Energy Performance of Buildings Regulations 2012.
From 1 April 2018 the regulations will apply on the tenancy of the property, the granting of a tenancy to a new tenant and on the granting of a new tenancy to an existing tenant. The minimum energy performance rating will come in to force for all existing tenancies from 1 April 2020. It will be unlawful to let a property which breaches the requirements for a minimum E-rating unless there is an applicable exemption.
Two years later, on 1 April 2020, the regulations will then stretch to apply to all privately rented properties within the scope of the Energy Performance of Buildings Regulations 2012. It should be noted that an EPC is only current for a period of 10 years and must be renewed thereafter. Moreover, the criteria for creating an EPC shall become more stringent with the continued reinforcement of the Building Regulations’ Energy Saving Requirements.
Consequently, any building that currently holds an E rating or possibly even a D rating which is due to expire in the near future may struggle to achieve the minimum energy standard requirement for April 2018 unless improvement works are undertaken. This is something that must be considered by landlords and asset managers.
Information available from the National EPC register indicates that 18% of existing commercial property stock has EPC ratings of F or G and approximately another 20% is rated E. The legislation, when introduced, will prohibit a landlord from letting out a substandard property at an F or G rating and landlords are liable to penalties unless exemptions are applicable.
Trident Building Consultancy has the expertise to ensure that your property portfolio complies with the coming regulations and can help you to withstand the increasing scrutiny of energy efficiency. Trident is also able undertake EPC risk assessments to enable you to begin planning for the new regulations.
Should you require any further information then please contact us.
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