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Landlords risk fines over energy efficiency

LANDLORDS are being advised to check the energy efficiency ratings for their properties before new regulations come into force or they could face hefty fines for non-compliance.

From 1 April 2018 it will be illegal to grant a new tenancy or extend a lease for a domestic or commercial property with an Energy Performance Certificate (EPC) rating of F or G until it has been upgraded and re-rated.

Domestic properties with current long-term existing leases need to be upgraded by 1 April 2020 and commercial properties with current long-term existing leases need to be upgraded by 1 April 2023. Heavy fines of up to £150,000 could be imposed on landlords if properties fail to comply with the legislation.

The change will make lenders no longer willing to approve loans on EPC Grade F or G buildings, or are likely to only lend if an upgrade plan is in place. Many valuers will also not sign off on properties unless they have tested the EPC rating.

The impact of this regulation will hit affected landlords hard. It is important for landlords to review the energy performance of each property now to make sure these properties will comply and meet the minimum legal requirements for energy efficiency and develop a plan of action to tackle the problem.

Before spending any money on upgrades landlords are advised to consult their tax adviser to make sure they are maximising any allowances or rebates. There are also government websites that allow them to conduct their own EPC portfolio audit – www.epcregister.com for domestic properties and www.ndepcregister.com for commercial properties.

If you would like to discuss any of these issues in more detail Rachel Nutt can be contacted on 01604 624011 or at or visit www.macintyrehudson.co.uk

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