News & Updates

Energy Performance Certificates (EPCs)

 


An EU Directive has introduced the need for energy certification of most buildings across the EU in the form of an Energy Performance Certificate. The EPC will give owners better information as to the energy efficiency and carbon emissions of their buildings. In Scotland EPCs will be required for residential and commercial properties on the occurrence of a trigger event, being the sale, new let or re-let of commercial and residential buildings. In addition, public buildings must display an EPC as of 4th January 2009.

 

You will need a certificate if you are:-

  • a homeowner - on the sale of your property - as of 1st December 2008 (if the sale of the property triggers the requirement to obtain a Home Report, or 4th January 2009 if your property is exempt from the Home Report requirements)
  • a landlord - the first time you let your property or re-let your property or a sub-lease is granted after 4th January 2009
  • the owner of a public building - as of 4th January 2009
  • the owner of a commercial property - on the sale of your property after 4th January 2009
  • a builder - an EPC must be attached to the completion certificate of a new build property if the building warrant for the property was applied for after 1st May 2007

  

Rented Properties

EPCs for rented properties (both commercial and residential) will be required on the first let and all re-lets which occur on or after 4 January 2009. A Certificate will not be required for existing lets, assignations, renewals, extensions or on the surrender of a lease.

The EPC must be displayed in a place which is easily accessible and protects the Certificate from damage, such as a cupboard containing the gas or electricity meter.

  

Public Buildings

An EPC must be displayed in a prominent place in a public building as at 4th January 2009. A building is a public building if:-

 

  • the conditioned (heated/cooled) area of the building is over 1000m²; and
  • the building is occupied by a public authority or an organisation providing public services to a large number of persons; and
  • the building is frequently visited (at least weekly) by members of the general public; and
  • the public have a right of access to the building or parts of the building providing services to the public directly; and
  • public funding, including part funding, is used in the operation or general upkeep of the building, or funds the employment of staff.

 

Clearly this is intended to cover buildings such as colleges, community centres, libraries and hospitals, and the offices of most private organisations will not fall within the definition of public buildings.  However, Housing Association offices and the offices of some charities may be classed as public buildings if they meet all of the above criteria.

 

Sale of Buildings

An Energy Performance Certificate is required when any existing building is sold, the trigger date being 1st December 2008 for residential property and 4th January 2009 for non-residential property. In relation to residential properties, the EPC is included as part of the Home Report, which is required when domestic properties are put on the market. A separate briefing note on Home Reports is available.

 

For new build properties, the building regulations require an EPC to be attached to the completion certificate for any building where the building warrant application was submitted after 4th May 2007.

 

Exemptions

Energy Performance Certificates will not be required for the following:

  • Buildings which do not use fuel or power for controlling temperature;
  • Buildings that are ancillary to a dwelling, that stand alone and have an area less than 50m²;
  • Limited life buildings which have an intended life of two years or less;
  • Residential buildings used as emergency accommodation (12 week limit);
  • Residential accommodation purchased for a holiday (12 week limit).

  

What information is included in an EPC?

1. An energy efficiency rating

A score is given which focuses on the level of carbon emissions from the property. This is represented by a rating between A and G with A being the most efficient. The property is also given a potential score, which shows how efficient the property could be if certain changes were made.

 

  • 2. Suggested improvements

The Certificate will detail improvements which could be made to better the energy performance of the property, for example, increasing insulation or replacing regular light bulbs with energy efficient ones.   The suggested improvements are not compulsory

 

  • 3. It is valid for 10 years.

 

 

Who prepares the EPC?

The EPC must be produced by a member of an accredited body. The Scottish Government has entered into protocols with a number of organisations whose members will be qualified to produce the Certificate. So far these bodies are:

  • The Chartered Institution of Building Services Engineers, Scotland
  • The Association of Building Engineers
  • The Energy Institute
  • The Royal Institution of Chartered Surveyors
  • The Heating and Ventilation Contractors Association
  • Building Research Establishment
  • National Energy Services and
  • Elmhurst Energy

The Government can add to this list as they see fit.

 

Penalty for failing to comply

The local authority is responsible for enforcing the new rules and a maximum fine of £5,000 could be imposed for non-compliance.

 

Summary

As of 1st May 2007:-

  • For new build properties, an EPC must be attached to the completion certificate.

As of 1 December 2008:-

  • On the sale of a residential property the seller must include an EPC in the Home Report (unless the property is exempt from the Home Report requirements eg. a RTB sale or a private sale)

As of 4th January 2009:-

  • All rented properties must display an EPC on the occasion of a new let or re-let.
  • All public buildings must display an EPC.
  • On the sale of a non residential property the seller must provide an EPC.
  • On the sale of a residential property (if it is exempt from the Home Report requirements). Please see our briefing on Home Reports for more information.

 

If you would like any further information on the issues raised in this briefing contact

Alison Thompson

on 0141 225 2589 or amt@tcyoung.co.uk

 

 

Please note that this briefing is a short summary of the new regulations as at July 2008 and is not a comprehensive statement of the law. Legal advice should be taken on individual circumstances