Landlords need to ensure that their properties meet minimum energy performance standards before letting out property.
On 29 January 2018, Duncan Morter published an article warning landlords that changes to EPC ratings are coming and you can read this article here
The New Regulations
From 1st April 2018 landlords may only grant a new lease or a renewal lease of commercial properties with an energy performance rating of E or higher.
Landlords should also be aware that further changes to the EPC rules are coming in the future and that the requirement for a property to be let with energy rating of E or higher will apply to existing leases on 1 April 2020 for residential properties and 1 April 2023 for commercial properties. This means that landlords will need to ensure that any properties they let out need to either have an energy rating of E or higher, or that they have validly registered their property as exempt on the Private Rented Sector exemptions register before the future changes come into effect.
Obtain legal advice before proceeding
It is important that Landlords seek legal advice before granting new or renewal leases. Landlords should start preparing now for the future to ensure that their properties have an energy rating of E or higher before 1 April 2020 (residential lettings) and 1 April 2023 (commercial lettings), or are satisfied that they can rely on one the exemptions available.
Our Commercial Property team can advise you on all legal aspects of your transaction, including whether you will be in breach of the new regulations.
If you are a landlord and are considering granting a new lease of commercial property, or renewing an existing lease then please contact Joseph McCullough, solicitor in our Commercial Property Department at Crombie Wilkinson on 01904 624185.