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Commercial EPC

Commercial EPC's

From 1 October 2008 sellers and landlords have been required by law to provide an Energy Performance Certificate (EPC) for all buildings or parts of buildings when they are sold or rented. Those carrying out the construction of a building will be required to provide an EPC to the owner.

An Energy Performance Certificate gives prospective buyers or tenants information on the energy efficiency and carbon emissions of a building.

The certificate was phased in from April 6 2008 for buildings sold, rented or built with a total floor area of more than 10,000sq m.

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

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What does this mean in practice?

If you are offering any accommodation for sale or let (this includes sub-letting) you will need to make an EPC available that reflects the energy performance of the accommodation on offer. An EPC should be provided to a prospective buyer or tenant at the earliest opportunity and no later than when a viewing is conducted or when written information is provided about the building or in any event before entering into a contract to sell or let.

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What is an Energy Performance Certificate?

The Energy Performance Certificate looks similar to the certificates now provided with domestic appliances such as refrigerators and washing machines.

It tells potential buyers and 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.

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How do I know whether my building requires an Energy Performance Certificate?

If you have a building (with a roof and walls) that uses energy to condition the indoor climate (i.e. has heating, air conditioning or mechanical ventilation) then you will require an EPC when it is sold or let. Parts of a building designed or altered to be used as separate accommodation may require their own EPC.

The sale and let of commercial buildings can be complex with floors let to different tenants, and with a mixture of retail, office and residential accommodation.

The EPC required for any space you offer for sale or let must reflect the energy performance of the accommodation on offer.

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Are there any circumstances where I don’t need an EPC?

EPCs are not required before the construction of a building is completed. Nor are thy required on the sale, rent or construction of:

  • places of worship;
  • temporary buildings with a planned time of use less than 2 years;
  • stand alone buildings with a total useful floor area of less than 50m2 that are not dwellings;
  • industrial sites, workshops and non-residential agricultural buildings with low energy demand.
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    How do I get an Energy Performance Certificate?

    By law, EPCs can only be produced by an accredited Energy Assessor. The accreditation schemes protect builders, owners, landlords and tenants by making sure Energy Assessors have the appropriate skills to carry out energy assessments, and that EPCs are always of the same high quality.

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    What happens if I do not have an Energy Performance Certificate?

    The penalty for failing to make an EPC available to any prospective buyer or tenant when selling or letting non-dwellings is fixed, in most cases, at 12.5% of the rateable value of the building, subject to a minimum penalty of £500 and a maximum of £5,000. There is a default penalty of £750 where the formula cannot be applied. A formula is used as the costs of producing an EPC for nondwellings are expected to vary according to the size, complexity and use of the building. The EPC will still be required.

    Currently the legislation states that the Landlord/Owner of the property is responsible for ensuring that the property has a Commercial EPC, and it is the Owner/Landlord who is liable to the fine.

    However, Tranding Standards and the CLG (the Government) are currently looking into changing the legislation which will make Compliance more stringent.

    In the not too distant future the Commercial Estate Agencies will become responsible for compliance with the legislation, and liable to the fine. This will also result in the property having to be removed from the market until such time as the report has been produced.

    Don't get caught out, the Rules are changing, Call us now for your FREE QUOTE.

    Download the Trading Standards Document

     

    Download the Government guide to Commercial EPCs

    Click here to open the Government Guide to Commercial EPC's. Right click on the link and choose "Save as" to save.

    Watch the Government guide to Commercial EPC’s

    Instructions: Click on the link, download the file and run it to watch the video.


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    info@brightenergyreports.co.uk
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