EPC regulation changes come into force in 2018 for non-domestic properties

Posted on: 21 June 2017

Commercial News icon

The Department for Energy & Climate Change (DECC) have finalised the 2018 EPC regulation changes for England and Wales. The regulations set out the minimum level of energy efficiency for private non-domestic rented property in England and Wales.

  • From the 1 April 2018, it will become unlawful for landlords of non-domestic private rented properties (including public sector landlords) to grant tenancy to new or renew or extend existing tenants if their property has an EPC rating of band F or G, unless an exemption applies or the landlord has made all the relevant energy efficiency improvements.
  • By 1 April 2023, landlords must not continue to let a non-domestic property which is already let if that property has an EPC rating of band F or G – even where there has been no tenancy renewal, extension or new tenancy.

If there is a breach of regulations there are a number of penalties that can be imposed and the maximum penalty amounts are applied per property and per breach of regulations.


Providing false or misleading information, or failing to comply with a compliance notice

Penalty:

  • Up to £5,000
  • Publication of non-compliance.

Renting out a non-compliant property

Penalty:

If less than three months in breach:

  • A fine amounting up to either*:
    • £5,000, or
    • 10% of rateable value.
      (Maximum penalty of £50,000.)
  • Publication of non-compliance.

If more than three months in breach:

  • A fine amounting up to either*:
    • £10,000, or
    • 20% of rateable value.
      (Maximum penalty of £150,000.)
  • Publication of non-compliance.
* Whichever amount is the greater.
 

Mixed Use Tenancy

There may be situations where there is a mix of commercial and residential property (i.e. a building with flats above a ground floor shop), owned by the same landlord.

In these cases the distinction between commercial and residential buildings should be clear, however if the property is let as a single unit  the landlord will need to examine the tenancy to determine whether the property is domestic or non-domestic for the purposes of the regulations.

 

Find out more on the Gov.uk website