08 May 2008

Energy Performance Certificates

From April 2008 the Energy Performance of Buildings Regulations 2007 will affect those selling, leasing or underleasing a commercial property.

By 6 April newly built or newly-leased buildings over 10,000m² must have an Energy Performance Certificate (EPC). Buildings over 2,500m² will need an EPC by 1 July 2008 and other commercial buildings must have one by 1 October 2008.

When new construction is complete, a constructor must give an EPC and recommendations report (see below) to the owner of the building.

In general, an EPC is required on the selling, letting or construction of a property. Existing occupiers and tenants will not need an EPC unless they sell, assign or sublet their interest. Where the building is to be sold or rented out, the ‘relevant person’ must make available, free of charge, a valid EPC to any prospective buyer or tenant.

An EPC shows the energy rating for a building, based on the performance potential of its fabric and services (heating, ventilation and lighting). The certificate will provide an energy rating of a building from A to G, where A is very efficient and G is the least efficient. The EPC will be accompanied by a recommendation report on how the energy performance of the building could be improved and a guide to the period over which the benefit of efficiency improvements are to be felt.
An accredited assessor must be commissioned to carry out the assessment.

The EPC can be valid for up to 10 years and will be stored on a national register operated by Landmark Information Group Ltd. Trading Standards Officers are responsible for enforcing the requirement to have an EPC.

Buildings only require an EPC if energy is being used to condition the indoor climate, so those which only have electricity and/or hot water are exempt.

Landlords granting leases of part, and tenants assigning leases relating to part of a building, will need to consider the need to provide an EPC carefully.

The new regulations raise many important questions and issues generally - especially for landlords - who may consider how they can improve energy efficiency in their buildings in order to maintain their market value.

For further information contact Rod Campbell on 01483 887766.