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| 1 minute read

Scrapping key EPC targets

In the Prime Minister’s speech delivered on 20 September 2023, he announced key changes to environmental targets previously set by the Government, one of which is of particular importance to landlords.

Under the previous policy, residential landlords were to bring their properties up to an EPC rating of "C" or higher by 2025 for new tenancies and for all existing tenancies by 2028. The Government has now abandoned these targets.

So, is the same coming for commercial premises?

Currently, all tenanted non-domestic properties with existing leases cannot continue to be let with an EPC rating of "F" or "G". In its 2021 consultation, the Government proposed to raise the minimum EPC rating on commercial premises to "C" by April 2027 and "B" by April 2030.

Despite this consultation ending over two years ago, the Government has still not published the response or clarified what standards commercial landlords must meet. Industry experts state this uncertainty is undermining energy efficiency investment and adding to the already difficult and costly conditions for many commercial premises.

At this stage, there is no indication when the response to the consultation will be available and whether the Government will row back on its initial proposals following the recent changes to energy efficiency standards for residential premises.

In a year of environmental doom and gloom these ongoing delays and broken promises are not giving property owners and investors much to be optimistic about. Whatever the Government decides, climate change is now a part of everyday life, and those companies and brands that push forward with their environmental goals despite the lack of clear Government policy on this issue, will surely be thanked by future generations to come.

The old policy was that from 2025, new tenancies would only be possible on properties with an Energy Performance Certificate (EPC) of C or higher - from 2028, this would apply to existing tenancies as well. Both have been scrapped.


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