10th November 2017


From 1st April 2018 new laws coming into effect, these laws will have an impact on the non domestic rental sector.

The legislation coming into force in April 2018 will make it unlawful to agree a new lease or renew a lease for a commercial property with an Energy Performance Certificate (EPC) rating below an E.

There several ways in which you will be classed as letting a property for these purposes:

  • You grant a new assured tenancy, including a shorthold

  • You renew or extend an existing assured tenancy, including a shorthold, by agreement with the tenant. This can be done when you grant a fresh tenancy to the same tenant or simply agree with the tenant that the existing tenancy will be extended

  • A statutory periodic tenancy comes into existence following the ending of a fixed term assured tenancy (shorthold or non-shorthold). At that point the law imposes a new tenancy on the parties where the tenant stays after the fixed term has run out. This is treated as a new letting for these purposes

  • A new assured tenancy by succession comes into existence when a family member takes over a Rent Act protected tenancy

  • A new tenancy is granted to a Rent Act protected tenant of the same or a different property owned by the same landlord

  • An agricultural occupancy or similar tenancy is granted, renewed or extended

NB: This note does not deal further with tenancies of agricultural dwellings.

A civil penalty of upto £4,000 will be imposed for breaches.

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