Following consultations the Government have announced new regulations for Energy Performance Certificates (EPCs).
Residential EPCs:
The current EPC metric will be replaced with a more holistic approach. A property’s EPC will now be judged off of:
- Energy costs;
- Fabric performance (how well the home retains heat);
- Smart readiness (how well the home is set up to use smart systems); and
- Heating system efficiency and emissions.
This intended to capture a better understanding of how energy efficient a home is.
Current Government projections estimate that the regulations will come in to force in October 2026.
Commercial EPCs:
Unlike the larger changes approaching residential property owners commercial property EPCs are not predicted to have any changes to their metrics.
Grace period:
Currently all property owners benefit from a 28-day grace period. Under the new proposed regulations there will be no such grace period. This means that prior to marketing the property a valid EPC must be obtained.
Heritage and listed buildings:
Another change all property owners should expect is the removal of the exemption to heritage and listed buildings. Currently there is an exemption were completing the works necessary to obtain a valid EPC would harm the character of the building. Under the new regulations even listed and heritage buildings will need to have compliant EPCs in order to be sold or let.
There has been acknowledgement that there must still be consideration of the unique characteristics of listed and heritage buildings with potentially a new exemption emerging.
Raising EPC ratings:
From 1 October 2030 all residential properties will need to achieve a rating of C or higher.
Commercial properties face greater uncertainty. A 2021 Government consultation proposed a timetable of a minimum C rating by 2027 with a minimum B rating of 2030 to follow. There has been little in the way of any confirmation since.
With these changes on the horizon, property owners should start preparing now to avoid delays and ensure compliance. At Ellisons, our commercial property team can advise on how the new regulations may affect your property or transaction. If you would like further guidance, please get in touch.