25 September 2024
UK EPC rating changes for new leases
Business Rates, Commercial, ESG & Sustainability, Industry News, Professional services, SHW News
From the of 1st April 2027, new leases in the UK must achieve a minimum EPC rating of C, with this requirement tightening to a minimum rating of B by 2030. Non-compliance could result in substantial fines and difficulties in letting properties. Both landlords and tenants should be mindful of the potential cost implications, which could escalate based on the severity of the breach. This change is a key element of the UK's broader strategy to achieve net-zero emissions by 2050.
Our Crawley-based director, Stephen Ray, recently provided advice to help a tenant renew their lease while structuring it to achieve an EPC rating of B by 2029, in alignment with upcoming legislation. Following negotiations, the landlord and tenant agreed on terms that included the tenant carrying out the necessary work to upgrade to EPC B in exchange for a substantial rent-free period, competitive market rent, and other incentives.
Demand remains strong for good quality industrial units, particularly with A/B EPC ratings, with supply still struggling to keep up.
