Image of a building Home | News & events | Legal updates | EPCs: Last minute changes and further guidance

EPCs: Last minute changes and further guidance

16 September 2008

1 October 2008 sees the implementation of Energy Performance Certificates for both commercial and residential property and from then buildings over 1,000m² occupied by public authorities and visited by the public must have a Display Energy Certificates.

On 9 September, the Government announced last minute changes to the regulations. This followed a raft of further guidance regarding EPCs and DECs, which was issued over the summer in an attempt to clarify some of the issues that have been raised by and during implementation.

Last minute changes

The headlines are that with effect from 1 October: the validity period of EPCs for homes when marketed for sale will increase from one year to three years.  Commercial properties that are already on the market before 1 October and remaining on the market will not need an EPC until 4 January 2009 at the latest.  If a commercial property is sold or rented in the meantime, an EPC must be commissioned and handed over as soon as possible. It will be possible to find out from the national EPC register whether an EPC exists for a property and the date of it. There are also changes to the circumstances in which EPCs can be disclosed, to the type of data to be lodged in the national register, and to the process by which EPCs are notified to building control following construction or modification of a property.

Commercial buildings

Revised guidance for EPCs relating to commercial properties covers a number of issues, but in particular contains new pointers for mixed use and multi-let buildings.
The basic rule is that a commercial property EPC is valid for 10 years, although if another EPC is obtained in that 10 year period, the earlier EPC will be invalid. Within a multi-let property, both landlords and tenants may enter into transactions which require an EPC. The guidance confirms that if an EPC is produced for part of a building (for example for a sub-letting of one floor as a separate unit), a prior EPC for the building as a whole or for any larger part of the building will remain valid, except for any separate transactions for the specific part covered by the newer EPC.

Conversely, if an EPC is subsequently produced for a building as a whole, or part of a building, any earlier EPCs for smaller or different parts of the building will also remain valid. The guidance also emphasises the importance of common heating systems in determining how many EPCs are required in respect of a particular building. If a building has a common heating system, one EPC can be produced for the whole building and used when the building, or any part of it, is sold or let. This can be contrasted with a building without a common heating system; an EPC prepared in respect of the whole of the building cannot be used for a sale or letting of part of that building - it can only be used if the whole building is let or sold out.

Public buildings

Transitional provisions have been announced in relation to Display Energy Certificates for buildings occupied by public authorities on a site or campus (most likely to affect NHS trusts, universities and schools). A site-based approach for the first year is to be allowed where it is not possible to produce individual DECs. There is also a new guide, Getting ready for DECs.

Residential buildings

The requirement to have an EPC is being rolled out to the sale or rent of all residential buildings from 1 October. As each residential unit is required to have its own EPC, guidance has been issued to explain how representative EPCs or sampling can be used to reduce the administrative burden and cost for landowners with large numbers of residential units. In addition, there is a new specific guide on EPCs in the social and private rented sectors for landlords.

Finally, the Government has published a guide aimed at members of the public who are renting a residential property with effect from 1 October.
Our revised guide to EPCs for non-dwellings is now available on our website.

Our new guide to EPCs and the implications for social housing is also available on our website.

Are any of the issues in this article giving you a headache? If so, we want to know

Name *

Comments*

I agree to Shoosmiths holding information about me in accordance with its privacy policy.*

To subscribe to our news updates click here.

 

Email this page

Get in touch

Beth Grundy

Associate
T: 08700 86 4134
I: +44 (0)121 625 4134
E: beth.grundy@shoosmiths.co.uk