Owners or landlords of commercial properties with a rating of F or G may be liable to pay large fines from April 2018. Fines will be based on the rateable value of the asset and will range from £2,000 per property up to a cap of £150,000.

The Energy Efficiency (Private Rented Sector) (England and Wales) Regulations 2015 will make it unlawful from April 2018 to let residential or commercial properties with an Energy Performance Certificate (EPC) rating of ‘F’ or ‘G’ (i.e. the lowest 2 grades of energy efficiency).

From 1st April 2018, a private landlord will be unable to let an F or G Energy Performance Certificate (EPC) rated property. The regulations apply not only to lease renewals (if there is already an EPC in existence), but also sub-letting.

The Government hopes that these staged regulations – the first tranche coming in to play on 1 April 2018 – will help to reduce Greenhouse Gas emissions by improving the energy efficiency of older commercial buildings.

There are some exceptions – listed buildings, properties with lease less than 6 months or a lease greater than 99 years.

But from 1 April 2020 the regulations will apply to all private rented domestic properties in England and Wales – even where there has been no change in tenancy arrangements and from 1 April 2023 for non-domestic properties.

Time to get your property in order.