It's important to note that the obligation to comply with the EPC rating requirements rests with the landlord and cannot be delegated to the tenant. While in some cases, the costs of upgrading works may be recoverable from the service charge, it is ultimately the responsibility of the landlord to ensure compliance.
Investors, developers, and landlords must consider several factors when it comes to complying with the new legislation. These factors include the cost of upgrading works, the potential loss of income if a property can no longer be rented out because the necessary works have not been done, and the level of fines if the requirements are not met.
To avoid penalties, portfolios should be reviewed, and EPCs obtained if they are not already in place. If works are required to improve the EPC rating, they should be considered, and if third-party consents or exemptions apply, applications to obtain them or be entered on the register of exemptions should be made.
It's crucial to act sooner rather than later as experts and contractors may become fully booked as the deadline approaches. Leaving it to the last minute could prove costly and lead to non-compliance.
Non-compliance could affect the availability of a property for letting and have an impact on rent/purchase price valuations. Therefore, property owners with an EPC rating of A to E need to carry out sufficient works to improve the rating before 1 April 2023 or register a valid exemption if available. Otherwise, it will be an offense to continue to let the property without having done so.