From 1 October 2008, sellers and landlords were 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.

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

The certificate provides energy efficiency A-G ratings and recommendations for improvement. EPCs were first introduced for the marketed sale of domestic homes as part of the Home Information Pack, although from April 2008 this was extended to newly built homes and large commercial properties. The ratings - similar to those found on products such as fridges - are standard, so the energy efficiency of one building can easily be compared with another building of a similar type. 
 

The seller or landlord of all commercial properties is responsible for ensuring that an EPC is available to a prospective purchaser or tenant at the earliest opportunity and no later than when a viewing is conducted or when written marketing information is provided about the building, or in any event before entering into a contract to sell or let.

There have been recent developments concerning the latter part of the above, whereby the erroneous belief that an EPC can be delayed until shortly before the parties enter into a contract for sale or lease is now being challenged. The Department for Communities and Local Government (DCLG) is seeking to clamp down on this and enforce that an EPC is available at the point when marketing commences.

The Energy Performance of Buildings (Certificates and Inspections) (England and Wales) (Amendments) Regulations 2011 come into force on 6 April 2012. The proposed changes are summarised as follows:

• A requirement to commission an EPC prior to commencing marketing, falling on both the person selling/letting and their agent to obtain the EPC within 7 days of first marketing the property and an absolute requirement to obtain the EPC within a further 21 days.
• Provision of the EPC front page to be included within all marketing particulars.
• A new requirement for air conditioning inspection reports to be undertaken, as required and lodged on a central register.

EPCs are produced by accredited energy assessors and for commercial properties are valid for a period of 10 years, or until a newer EPC is prepared.

The enforcement of EPCs will be undertaken by local Trading Standards. In most cases, the penalty charge for failure to produce an EPC will be 12.5 per cent of the rateable value of the property, subject to a minimum penalty of £500 and capped at a maximum of £5,000.

OUR RECOMMENDATION
Christie + Co is pleased to recommend a firm of qualified assessors in order to provide coverage nationwide who can provide a cost effective and accurate EPC. We will be unable to market a business for sale without an EPC.

Please contact us at one of our offices for further information or e-mail us at epc@christie.com