Energy Performance Certificates
Introduction
Climate changes, rising energy prices, the decreasing availability of conventional energy sources are causing governments to begin to force energy saving on us all. New housing stock must meet energy efficiency standards and first for selling existing dwellings and now for letting existing dwellings energy performance standards will affect all of us. Energy performance is assessed via "Energy Performance Certificates" EPC's. EPC's are stored on a central database so the government is not only ensuring new buildings meet energy efficiency standards but is also collecting data on the homes we buy, sell and let!
What is an EPC?
An EPC provides a rating for the energy performance of a building. The ratings are standard so the energy efficiency of one building can easily be compared with another building of a similar type. EPCs are a little like the red to green rating certificates now provided with domestic appliances (washing machines etc..). An EPC includes information on both the energy efficiency and carbon emissions of a building on a scale of A to G, where A is the best. An integral part of the EPC is a recommendation report which suggests ways to improve the energy efficiency of the property. The certificate also shows the rating that could be achieved if all the recommendations were implemented.
How is the energy efficency rating calculated?
The procedure for calculating energy ratings and the main information on the certificate is automated via accredited software which the assessors must use. The assessor enters the information on the particular property and submits it to a central database of all EPCs. The central database holder issues the certifi-cate with a unique reference number and the assessor then issues a copy to the property owner.
Legal requirements
It is a legal requirement to have an EPC for the following transactions, and to give a copy to the buyer or tenant.
- EPCs are a requirement for the sale of all existing dwellings from 14 December 2007.
- EPCs are a requirement for all new homes from 6 April 2008.
- EPCs are a requirement for all rented/let dwellings from 1 October 2008.
- EPCs will also be required for large air conditioning units (over 250kW) from 4 January 2009.
- EPCs will also be required for small air conditioning units (over 12kW) from 4 January 2011
- EPCs are required for commercial buildings over 10.000m2 from 6 April 2008
- EPCs are required for commercial buildings over 2.5000m2 from 1 July 2008
- EPCs are required for all remaining commercial buildings from 1 October 2008.
Failure to do so could lead to a fine. Current thinking is that the discerning buyer or tenant will either choose energy efficient properties, thereby forcing prices or rents down on non energy efficient properties and perhaps the owner to upgrade or carry out the recommendations made.
How often do I need to have my EPC updated?
In short, every time you sell, or every new tenancy. If a tenancy is renewed by the same tenant, the need for an EPC does not arise again. Also, if a tenant was in occupation at 1 October 2008 and continues to occupy after that date there is no requirement for an EPC.
Next steps
EPCs can only be obtained from accredited energy assessors. There are different types of accredited assessors for different types of buildings.
Types of energy assessor
- On construction domestic energy assessor -for new dwellings
- Commercial (non-domestic) energy assessor - for sale or rent of commercial buildings
- Operational Ratings Assessors- for display certificates for public buildings
- Domestic Energy Assessors-for existing dwellings
- Air conditioning system assessors
Before instructing your EPC check the assessor is property accredited.
SOME GUIDANCE ON TYPES OF RENTED DWELLINGS AND EPCs
| Type of Building | EPCs Required | When Required |
| Block of self-contained flats, each one with separate kitchen, bathroom and front door |
One EPC for each flat |
EPC required for self-contained dwelling the first time it is let to a new tenant after 1 October 2008 |
| Property used as an HMO with separately rented bedrooms, but shared kitchen and bathroom |
One EPC for whole property (copy given to each tenant) |
EPC required the first time a bedroom is let to a new tenant after 1 October 2008 |
| Property used as an HMO with a mix of self contained dwellings and rented bedrooms with shared kitchen and bathroom |
One EPC for each self contained dwelling. One EPC for remain-der of property (copy given to each tenant) |
EPC required for self-con-
tained dwelling the first time it is let to a new tenant after 1 October 2008. For remainder of the property, EPC required the first time a bedroom is let to a new tenant after 1 October 2008
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| Large houses divided into two flats. | One EPC for each flat. | EPC required for self-contained dwelling the first time is let to a new tenant after 1 October 2008. |
| Commercial premises (e.g. a shop) with a self contained flat above. | One EPC for the flat. The shop will need a separate commercial EPC if being sold or rented out. | EPC required for dwelling the first time it is let to new tenant after 1 October 2008. EPC required for a commercial premises the first time it is sold or rented out after 1 October 2008 (if less than 2.500 sq.m.) |
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| Hot Tips
- Private landlords who pay income tax can off-set
spending on certain measures like loft and cavity insulation up to £1,500 per year against taxable income. This scheme will run until 2015 and details are on the Treasury website at www.hmrc.gov.uk/budget2007/bn63.htm. The scheme is called the Landlord's Energy Saving Allowance. - It is only relettings after 1 october 2008 that need
an EPC. So there is no mad rush to get your EPC done before 1 october 2008.
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What we can do for you ?
We have team of professionally educated and certificated EPC assessors who can certificate all types of property and give recommendation for possible improvements.
Our legal tem can advise you on possible governmental grants to improve energy performance of your property as well as tell you if and when you need EPC certificate.
References:
http://www.planningportal.gov.uk
http://www.diydoctor.org.uk/projects/sap
http://www.economic-energy.com/sapratings.html
http://www.greenheat.uk.com/index.html
www.cibse.org.uk
http://www.arma.org.uk/
http://www.energysavingtrust.org.uk/
http://www.hmrc.gov.uk/
http://www.communities.gov.uk/documents/planningandbuilding
For more information Call: 020 7267 2900or Email Us »
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