Government restricts the letting of F and G energy-rated non-domestic buildings from 2018

Published on 6th Feb 2015

The Department of Energy & Climate Change has published its consultation response on minimum energy performance standards in the non-domestic private rented sector.

The response follows the Government’s position from its consultation document of July 2014, with the key areas being confirmed as:

  • From 1 April 2018 it will be unlawful for a landlord to grant a lease to a new tenant or to an existing tenant if the property has an EPC rating of F or G.
  • From 1 April 2023 the E rating minimum energy standard will apply to all privately rented property, including where a lease is already in place and a property is occupied by a tenant.

The Government has allowed some exemptions for landlords from meeting the minimum standard, including where energy efficiency improvement measures are not cost-effective, either within a 7-year payback, or under the Green Deal’s ‘Golden-Rule’ principle and also where landlords are unable to obtain all necessary consents to install the necessary improvements.

The draft regulations were laid for parliamentary approval on the 4 February 2015.

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* This article is current as of the date of its publication and does not necessarily reflect the present state of the law or relevant regulation.

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