The Cost of EPC non-compliance

EPC non-compliance for residential property

There are strict requirements that must be fulfilled in order to successfully serve a section 21 Notice, one of those is having a current EPC in place.

In 2015 the Minimum Energy Efficiency Standards (MEES) required rented properties in England and Wales to have a band minimum rating of ‘E’ and above. Since 01 April 2020 you cannot let a property if the EPC rating is below a rating of ‘E’ unless you have a valid exemption in place. This came into force for new tenancies on 01 April 2018 and on 01 April 2020 for existing tenancies.

There is now change afoot for the minimum rating of ‘C’ to apply to all new tenancies from 01 April 2025 and for existing tenancies from 01 April 2028.

The penalty for EPC non-compliance after 01 April 2025 will be a fine of up to £30,000.

There is a cost cap in place meaning that if you cannot improve your property to EPC E for £3,500 or less, you should make all the improvements up to that amount and then register an ‘all improvements made’ exemption. The Government website has more information on this for landlords.

EPC non-compliance for commercial property

From 01 April 2023 it became an offence to let a commercial property if the EPC rating is not ‘E’ or above. From 01 April 2025 this must be a ‘C’ or above for all new tenancies and from 01 April 2028 it applies to all tenancies. The penalty is based on the rateable value and can result in a fine of between £10,000 and £150,000 per breach.

It is the aim of the Government for all properties to be rated ‘B’ by 2030 and to reach net zero emissions by 2050 so we are may well see an increase in the enforcement of the Regulations as that goal gets nearer.

Contact us

If you need support when resolving a dispute, contact Louise Mackay with our Dispute Resolution team, via e. LouiseMackay@rixandkay.co.uk or t. 01273 766 923