does this affect you?
Since 1 October 2008 all buildings
whenever sold, built, rented or assigned require
an Energy Performance Certificate (EPC). It is intended
to be a guide about the energy performance of the building.
It will provide valuable information to help you decide
on the energy rating and cost that might apply to your
investment or business premises. It could affect your
decision to buy or take occupation. The EPC is also
being introduced to help improve the energy efficiency
of our buildings. Its introduction is part of a programme
of work across Europe to help preserve our energy and
our planet. Larger public buildings will also need
a Display Energy Certificate (DEC) showing the energy
efficiency of the building and its usage. Only accredited
energy assessors can produce EPC’s or DEC’s.
As a seller of a property it is your
responsibility to make available the EPC to any potential
buyers, free of charge. As the landlord you are required
to make the EPC available to prospective tenants as soon
as the property is offered for let. A lease assignment
is treated as a sale and therefore the Assignor should
provide the EPC.
As a seller or landlord it is your responsibility
to provide the EPC, regardless of whether an agent or
other organisation is acting on your behalf. You should
check to ensure that your agent or organisation is complying
with the regulations.
The penalty for not providing an EPC
is 12.5% of Rateable Value, set with a minimum fine of £500
and capped at a maximum of £5000. A default penalty
£750 is applied where the property does not have
a Rateable Value.
What is an Energy Performance Certificate (EPC)?
Each assessment is based upon
the characteristics of the building and its services
such as heating and lighting and its energy usage.
The assessments create an asset rating for the property,
which will reflect all the considerations assessed
during the inspection. These include the age and condition
of the building. The EPC will be accompanied by a report,
which provides recommendations on how to use and maintain
the building more effectively, and will also provide
improvement recommendations to help enhance the building’s
What is a Display Energy Certificate (DEC)?
A DEC is
required on a building or part of a building occupied
by either a public authority or an institution providing
a public service to a large number of people. The building
must have a total useful floor area of over 1000m2.
A DEC shows the energy performance of the building based
on its actual energy consumption as recorded annually
to provide an operational rating. The DEC also has an
asset rating for the property if this is available by
way of an EPC. The DEC is valid for one year and must
be updated annually.
What is exempt?
There are some
exemptions. An EPC will not be required:
- for a place of worship
- for temporary buildings with
a planned use of less than two years
- for detached stand
alone buildings with a useful floor area of less than
- for industrial sites, workshops and non residential
agricultural buildings with a low energy demand.
An EPC is not required for a building, which is due
to be demolished. The seller or landlord should be able
to confirm that the building is suitable for demolition
and there is proof of an application to do this from
the local authorities.