Important briefing note on Energy Performance Certificates – Landlords beware when refurbishing your buildings

The government has confirmed that all non-domestic rented buildings will need to attain a minimum of EPC band B by 2030, and are now consulting on the framework to implement this.

You may already know that the Government set a Minimum Energy Efficiency Standard (MEES) of EPC band E for private rented properties, which has applied to all new tenancies (including renewals) since April 2018. In addition, from 1^st April 2023, this will apply to all privately rented properties mid lease-term even if there was no EPC such as a lease granted pre-2008. The exceptions such as places of Worship or low-energy-use buildings will still apply

In October 2019, the Government consulted on proposals that would uplift existing MEES regulations, in order to set a new long-term regulatory target of EPC band B by 2030 (or the highest EPC band a cost-effective package of measures could reach). This change will result in almost 1 million non-domestic buildings being cheaper to run, more energy efficient, and able to accept low-carbon heating systems. It is estimated to cover around 85% of the non-domestic rented stock, deliver up to 10.3TWh in energy savings by 2030, and 4.1MtCO2e of carbon (non-traded) over Carbon Budget 5 (2028-2032).

Implementation of new Minimum Energy Efficiency Standards – Consultation

The Government Department for Business Energy and Industrial Strategy (BEIS) has released a new consultation which makes proposals to improve the implementation and enforcement of the new EPC band B requirement. The consultation can be split into four key areas:

1. Review of feedback received from consultation responses in October 2019
2. Outline of the proposed new framework for implementing an EPC band B trajectory:
   1. Phase in the requirement with an interim milestone of EPC band C in 2027 to ensure early action is taken by the market
   2. Introduce a compliance window designed to simplify compliance and enforcement
   3. Move away from enforcement at the point of let, and introduce a temporary 6-month exemption to address the challenges of compliance for shell and core premises
3. Proposals to strengthen enforcement and on amendments to existing exemption requirements to support the new framework:
   1. Encourage compliance by placing a requirement on letting agents and online property platforms to only advertise and let properties compliant with the PRS Regulations
   2. Assist local authority enforcement of the PRS Regulations
   3. Tighten exemptions by amending the validity period of exemptions to require a review at each compliance window, and introduce a standardised payback calculator to determine cost-effective measures
4. Invite views on how smart meters could play a role in supporting landlords to meet the PRS Regulations as part of the next phase of smart meter rollout.

Next Steps

There is a new version of Part L Building Regs due by 2025 entitled The Future Buildings Standard. This may well enable electrically heated buildings to be given a more generous and accurate ‘Carbon Factor’ more in line with gas heated buildings. Grid Supplied Electricity is becoming a greener source of energy as the last few coal-fired power stations are turned off or converted and the use of off-shore and on-shore wind turbines and solar farms increase.

UK Energy Surveys are happy to help clients get ready for these deadlines and produce draft EPCs and Energy Modelling exercises to see what is needed to improve the existing ratings.

For more information please contact:

Jeremy Maltby

Head of Surveying

jeremy.maltby@ukesurveys.com

UK Energy Surveys: The Studio : 22 Stanmore Lane : Winchester SO22 4AJ

t:    01962 861555

m:  07792 843 616

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