- Landlords, the clock is ticking
Landlords, the clock is ticking
Landlords, the clock is ticking17 May 2016
F means fail
1st of April 2018 marks the beginning of a new era for the commercial property world. The new minimum energy efficiency regulations have synchronised with the National Curriculum, and F means only one thing – fail. An EPC rating of F or G will be ‘sub-standard’.
The prima facie position is that from this date, a landlord of a sub-standard property must not grant a new tenancy, or even grant an extension or renewal of an existing tenancy without first bringing the property up to standard. It will in fact be illegal to do so.
Some things simply can’t be ignored
From 1st April 2023 the regulations take their second bite. Landlords will be left with no choice but to upgrade the energy efficiency of sub-standard privately rented commercial property, as from this date the landlord must not continue to let the property on such a tenancy.
Time to get the for sale board up?
The regulations do not directly apply to acquisition transactions. The impact from 1st April 2018 for new purchasers remains as above. However, with regards to the changes from 1st April 2023 the purchaser will have 6 months from the date that they become the landlord to revise and upgrade the energy efficiency of the property before they pass or fail the test.
For further information on the new Minimum Energy Efficiency Standards, please contact us or call 0161 832 3434.