Obligatory renovations from January 1, 2023

Are you looking for a new home and your eye catches on a gem with energy label E or F? Beware! From January 1, 2023, you are obliged to thoroughly energetically renovate or "BENovate" this property within 5 years of transfer to at least an energy label D or better. Although a lot of financial support measures are available, it is therefore best to provide the necessary renovation budget on top of the purchase price. The energy efficiency of a property will therefore play an increasingly important role in the valuation of a property. Our team explains the details in a nutshell.

Mandatory renovation based on a home’s energy label

Every property for sale or rent has an Energy Performance Certificate or EPC. The energy score from A to F indicates how much the energy consumption or estimated energy average kW/m² of floor space of the home will be consuming. The less energy the house needs, the higher the label (A is the highest). Since the renewal of EPC in 2022, the attestation also contains specific recommendations to make the home more energy efficient. That way, as a buyer, you will immediately know which works have the most impact. After renovation, you will have tot prove the new energy score with a new EPC.

Renovation obligation for houses and flats

The renovation obligation for residential buildings only applies in the event of a notarial transfer of full ownership, the establishment of right of building lease or the establishment of lease hold. For all other forms of transfer such as inheritance, the renovation obligation does not apply. Properties to be demolished within 5 years, temporary structures used for less than 2 years and protected monuments are exceptions. Renovation obligation also applies when buying 1 flat within a building with co-ownership. This may require works to parts of the building owned by the community, such as heating for example. Legally required works can be decided by a simple majority (50% + 1) and will affect the future value of all apartments in the building. 

Obligatory renovation within 5 years

From January 1, 2023 new owners of energy-guzzling residential properties will thus be obliged to carry out a thorough energy refurbishment to minimum EPC score D within five years of transfer. The period starts to run on the date of the execution of the authentic deed or on the date of the establishment of the right of superficies or long lease. If the new label is not obtained on time, you risk administrative fines of 500 to 200,000 euros. In addition, you will be given a new term for renovation.

Financial support measures for “BENovation”

The obligatory renovation to label D is part of a long-term vision of the Flemish government. The label to be achieved after renovation will be gradually tightened to label A (2040-2045). Although owners will be given a postponement until 2030 to achieve label D, financial support measures are already being deployed for all energy renovators. The intention is that the aim is immediately higher than energy score D. Depending on the conditions, your income, the nature of the work,... you can apply for an interest-free renovation loan, the energy loan+, the 0% energy loan, the EPC label premium or the available renovation premiums.

If you take the necessary measures, a house or apartment with a lower energy score does not necessarily have to be a deterrent. Make sure to ask for the full EPC so you have your renovation cost mapped out before you buy.

Would you like more information or advice on obligatory renovation? Team AP&P is eager to assist you personally. You can contact us via 078 48 47 00 or info@ap-p.be .

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Obligatory renovations from January 1, 2023