Energy Performance Certificates (EPC) from 1 October, 2008

From 1 October 2008 Landlords will be required to provide Energy Performance Certificates (EPC) for all buildings when they are sold or let.

By way of a summary, as of 6 April 2008, EPCs became applicable on all buildings sold, let or built with a total floor area of more than 10,000 sq m.

From 1 July 2008, this extended to buildings with a total floor area of more than 2,500 sq m.  From 1 October 2008, all remaining commercial premises will require an EPC on sale, letting or construction.

An EPC is valid for 10 years or until a new EPC is prepared.  During that period, it should be made available to a Buyer or new Tenant.

Does your building require and EPC?

The legislation says, if you have a building (with a roof and walls) that uses energy to condition the indoor climate (ie. heating/air conditioning) then you will require an EPC on sale or letting.  The only exceptions are places of worship, temporary buildings with a planned time use of less than 2 years, stand alone buildings with a total useful floor area of less than 50 sq m that are not dwellings, industrial sites, workshops and non-residential or agricultural buildings with low energy demand.

When must the EPC and recommendations be made available?

When any written information about the building is provided in response to a request received from the prospective Buyer/Tenant or when a viewing is conducted or if neither of those occur, before entering into a Contract to sell or let.

What are the exceptions?

The Landlord believes that the prospective Buyer/Tenant is unlikely to have sufficient funds to buy or rent the property or is not genuinley interested in renting that type of property or the Landlord is unlikely to be prepared to let the property to the prospective Buyer/Tenant (you should note that this does not authorise unlawful descrimination).

What happens in the following scenarios?

Selling or letting part of a building where the building has a common heating system.  If the building has a common heating source then the Seller or Landlord can prepare or make available an EPC for the whole building.  The EPC can then be made available for any part of the building subsequently offered for sale or rent.

Buildings with separate parts and separate heating systems.  An EPC should be prepared or made available for each part of the building being offered separately for sale or rent.  The EPC should reflect the services in those parts being offered for sale or let.  A separate EPC should be provided for any common areas which exist solely or mainly for access to that particular part of the building.

Selling or sub-letting a building as a whole.  You can prepare (or make available) an EPC for the whole building even if that building has parts designed or altered to be used separately, with separate heating systems.  If the building has a common heating system the EPC may subsequently be used for any part of the building offered for sale or let.

Residential accommodation.  Any separate residential accommodation which is self-contained will require its own EPC.  Residential space that can only be accessed via commercial premises (ie. house with shop in downstairs room or shop with accommodation above where access is through the shop) will be assessed with the commercial premises as a single building.

Scenarios where EPCs will not be applicable:

Lease renewals or extensions to existing Tenants;
Compulsory Purchase Orders;
Lease surrenders