Energy Performance Certificate (EPC)

1st October marked the final roll-out of Energy Performance Certificates (EPCs) to all buildings. The certificate has been extended to include rented homes, commercial properties under 2,500m2 and all remaining homes for sale.

This includes those homes that have been on the market before the introduction of Home Information Packs (HIPs).

Sellers of homes who have not had to prepare a HIP will need to commission an EPC as soon as possible so they are to be able to comply with their duties in relation to EPCs from 1 October 2008. From that date they will be under a duty to make an EPC available to a prospective purchaser at the earliest opportunity, and certainly when they provide any information in writing or when viewing takes place. An EPC will have to be made available before exchange of contracts in all cases, and given to the purchaser on completion.

Residential Energy Performance Certificate

The requirement for an Energy Performance Certificate has been set by a European Directive which all member states have to implement. The EU found that a significant proportion of energy was being used by commercial and residential properties.

Small increases to the energy efficiency in the millions of properties across Europe will result in a significant overall reduction in energy usage.

When at the property the Energy assessor will collect key information that affects the energy efficiency of a property. For example, the depth of insulation in the roof will be measured as will the efficiency of the boiler. All this data is entered into EPC software which calculates the energy efficiency and produces a result on an easy to read A-G scale.

The energy report includes energy saving recommendations that can reduce household bills. These recommendations are easy to understand and set are out showing an estimated saving through the year.

The overall efficiency is shown on a colour bar chart similar to that used on white goods (shown below) along with the potential rating if the recommended measures are implemented.

The Certificate also tells you, on a scale of A-G, about the impact the home has on the environment. Better-rated homes should have less impact through carbon dioxide (CO2) emissions.

 

From 1st October 2008 marks the final roll-out of Energy Performance Certificates (EPCs) to all building sectors with the introduction of EPCs to rented homes and the extension and Landlords will have to provide Energy Performance Certificates for every property that they let.


Introducing Commercial EPC To All The Properties

The Energy Performance of Buildings Directive has introduced new certification requirements for all commercial buildings across Europe. An Energy Performance Certificate (EPC) is intended to inform potential buyers or tenants about the energy performance of a building, so they can consider energy efficiency as part of their investment or business decision to buy or occupy that building.

Non-dwellings are responsible for almost 20 per cent of the UK's energy consumption and carbon emissions. This guide provides an introduction to the Regulations for Energy Performance Certificates for non-dwellings on construction, sale or let in England and Wales. Energy Performance Certificates (EPCs) promote the improvement of the energy performance of buildings and form part of the final implementation in England and Wales of the European Directive 2002/91/EC on the Energy Performance of Buildings.

Property owners and landlords will not be able to complete any property transactions without having an EPC. Implementation dates and the level of certificate needed are being phased in based on building size and complexity

England:
From 6th April 2008 all Commercial buildings greater than 10,000m sq
From 1st July 2008 all Commercial buildings greater than 2,500m sq
From 1st October all Commercial buildings greater than 50m sq

Scotland:
All buildings - 4th January 2009

An EPC is valid for ten years, or until a newer EPC is prepared

Display Energy Certificates (DEC's)

Operational Ratings Assessor (Production of Display Energy Certificates)

By 1st October 2008, all public buildings will require a display energy certificate (DEC) which shows its operation rating (OR) and an associated Advisory Report (AR).

DECs are valid for one year and the advisory report is valid for up to 7 years. DECs may only be produced by an accredited Operational Ratings Assessor (ORA). In order to become accredited, assessors must meet the relevant national occupational standard (NOS) in full, which includes full knowledge of operational rating methodology and the ability to use the approved Operational Rating.

Public authorities, and institutions providing public services to a large number of persons, who occupy space in a building with a total useful floor area greater than 1000m2, must display a valid display energy certificate ("DEC") at all times and have a valid advisory report in their possession.

What is an EPC?

What is an EPC?

An Energy Performance Certificate (EPC) provides an energy rating for a building based on the characteristics of the building itself and its services such as heating, ventilation and lighting. The certificate includes an asset energy rating from A to G; A being the most efficient and G being the least efficient. The EPC also contains a recommendation report which suggests ways to improve the energy efficiency of the building.

What's involved?

It is the responsibility of the property developer, owner, or landlord to obtain an EPC. They will need to find an accredited EPC assessor to survey their property portfolio and produce the certificate. This typically involves looking at floor plans, surveying the building, constructing a computer building energy model, making recommendations and registering the certificate with the government's online database.

How much does an EPC cost?

The price of an EPC will vary depending on a number of factors including the size, location and age of the building as well as market demand. If the building has more complex air conditioning systems and separate spaces, this will require a more comprehensive visit.

Are there any penalties for not providing an EPC?

The landlord is liable for failing to provide an EPC and could be fined for non-compliance, the fine for which can be up to £5000. However, this is not clearly defined and the fine may be issued on multiple occasions if the EPC remains outstanding.

What buildings will be exempt?

The following places will not require an EPC:
  • Places of worship
  • Stand-alone building of less than 50 square meters (except for dwellings)
  • Temporary buildings with a planned time of use of 2 years or less
  • Particular building with a low energy demand (e.g. barns)
  • In some circumstances buildings to be demolished are exempt from requiring a certificate
  • An EPC is not required for any (off-plan) sales or letting before the construction of the building has been completed


What will the assessor look at in the building?

It is expected that the assessors will look at the following factors:
  • Thermal characteristics of the building
  • heating and hot water systems
  • air conditioning, artificial ventilation
  • built in lighting installations
  • the position and orientation of the building
  • solar systems
  • natural ventilation and indoor climatic conditions

To view comprehensive lenders  who accept personal searches,

Call on: 01923 620 240/1

Email us: admin@whitefieldlegal.com

Whitefield Legal Services:
1st Floor North Argyle House,
Northwood Hills,
Middlesex HA6 1LN

Call on: 01923 620 240/1

Bharti Bhuva
Director
We are fully accredited by the Property Codes Compliance Board. So you could call us the one stop.