From 1 April 2023 all privately rented non-domestic properties in England and Wales will require an EPC rating of E or above, even when there has been no change in tenancy arrangements, unless the property qualifies for an exemption from the minimum energy efficiency standards. Any exemption must be registered on the PRS Exemptions Register.
An EPC is not required if you can demonstrate that the non-domestic premises is:
- Listed or officially protected and the minimum energy performance requirements would unacceptably alter it
- A temporary building to be used for 2 years or less
- Used as a place of worship or for other religious activities
- An industrial site, workshop or non-residential agricultural building that doesn’t use much energy
- A detached building with less than 50 square metres total floor space
- Due to be demolished (and you have the relevant planning consent)
Temporary exemptions to the minimum energy efficiency standards are available if:
- You cannot obtain third party consent to undertake the improvements, but you must demonstrate you have made reasonable effort to seek consent. For example, if the lease requires the tenants approval to make the improvements but they will not consent to the works. This exemption is valid for 5 years from the date of registration on the PRS Exemption Register or until the current tenancy ends.
- Specific energy efficiency measures would reduce the market value of the property by more than 5%. This exemption is valid for 5 years but must be supported by a report from an independent RICS surveyor.