The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 makes it potentially unlawful to let F and G rated properties, and this introduces a new risk to value.
As of April 1st 2018, landlords cannot let, extend or renew a lease for those properties which have an F or G rated EPC unless an exemption applies. As of April 1st 2023, landlords cannot continue to let a property with an F or G rated EPC unless an exemption applies.
One such (temporary) exemption is that the EPC rating cannot be improved through measures that pay for themselves within a 7 year period. Only then may a property be let.
Therefore in many cases there will be a financial cost to compliance and this cost should be understood and considered in the context of valuations and asset management.
EVORA can help independent landlords, funds and REITs to identify and manage MEES derived risk using our expert knowledge and market leading environmental management software, SIERA.
We can review existing EPCs to identify those assets at risk and we can develop an asset management strategy at the fund and portfolio levels. We can help to establish where improvements can be made, and we can assess the impact these changes would have on the overall EPC rating.