2018 EPC Minimum Standards Regulations

Published on: 3rd March 2016

The Energy Act 2011 commits the government to bring into force by 1 April 2018 regulations prohibiting the letting of properties in England and Wales that do not meet the minimum energy performance standard (MEPS).  The proposed changes would make it unlawful for you to let residential and commercial properties with an EPC rating lower than ‘E’.

What does this mean to me?

Properties that fall below an EPC rating of E would become impossible to market unless upgraded to meet the minimum standards.  This may lead to valuations, rent reviews and dilapidation assessments becoming negatively affected with a significant reduction in the property value.

The regulations will apply with three possible options.

1. Only new leases need to comply with the minimum EPC rating of E by 1st April 2018;
2. All leases will be affected from the 1st April 2018; or
3. A combination of the two – meaning the regulations will apply to all new leases from the 1st April 2018 with a long stop date of 2023 for all existing leases.

Will it affect all landlords?

The government are proposing a handful of instances where landlords may be exempt from the regulations. 
- If the energy efficiency improvements which are proposed, would have a negative impact on property value.
- If third party consent is denied from tenant, leader, planning authority or a higher landlord.
- If all improvements that are possible to be undertaken at no upfront cost to the landlord still creates an EPC rating below the minimum requirements.

What can we do for you?

We recommend that you start taking action now rather than waiting for the government to publish the specific details and accordingly we can assist you in the following ways:
- Complete a full review of your property portfolio and assess the properties which currently have an EPC’s
- Identify those properties that do not meet the proposed minimum EPC rating
- Establish the cause of the poor rating
- Identify what recommendations can be made to improve the EPC rating
- Assess the lease to identify where the responsibility lies
- Provide an assessment of the impact on maintenance life cycle costing
- Assess those works that would be recoverable by way of enhanced capital allowances including those me through the Governments Green Deal initiative
- Procure and manage all necessary improvement
- Provide energy performance reports and ratings for statutory compliance and marketing purposes
- Provide advice on the appropriate marketing of your properties.

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