Commercial Landlords whose properties do not have the right energy performance certificate will not be allowed to rent their properties – and many are not aware of the issue – a survey has found

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Thousands of landlords throughout the UK are unaware of new Government rules about Energy performance which may make it illegal to let their properties, a survey conducted by leading tax and advisory firm, Blick Rothenberg, has found.

From April 2023 Commercial Landlords whose properties do not have an energy performance certificate (EPC) of E or above will not be allowed to rent their properties – killing the value of their investment property and causing chaos for their tenants.

Residential landlords have a little more time to prepare – their rules are scheduled to change in April 25, but the proposed change is more onerous as lettings will be illegal if a property does not have an EPC rating of C or above from that date. 

Head of Property & Construction, Heather Powell, who commissioned the survey, which polled over 100 major landlords, said: “The results are concerning, both for Landlords, their funders, their tenants, and for the Government’s target re zero carbon emissions in 2050.”

She added: “UK Landlords have a crucial role to play in reducing carbon emissions in the UK, but the Government has not communicated this, despite introducing legislation which will makes landlords improve the energy performance of their properties. Commercial landlords have now only got four months to complete any works required to comply with the rules being introduced from April 2023.”

Heather said: “Residential landlords have more time, but the combination of increased interest rates, and the change in the personal tax regime which has substantially increased the tax payable by buy to let landlords, has for many meant that they do not have the funds required to complete the necessary works. The solution for many in this position will be to sell their properties, to occupiers.”

“As home owners are not required to complete the works the opportunity to improve the energy performance of UK homes will have been missed – and carbon emissions will not be reduced.”

She added: “The solutions? Jeremy Hunt has indicated that support for businesses from April 2023 with energy bills will be tied to energy improvements.  If he can introduce a coherent tax and grant policy in April 2023, which landlords understand and can access, he will assist the country significantly in achieving the zero-carbon target by 2050.”

“Measures should include a review of capital allowances, and expansion of this tax relief to ensure an immediate deduction is given against tax liabilities for all the works undertaken to improve the energy efficiency of residential and commercial properties.”

Heather said: “Our Prime Minister has stated that it is essential for all nations to stick to commitments made at COP26 – UK landlords have a vital contribution to make if the UK is going to deliver our commitments, but need funding from the Government via tax relief to deliver.”

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