Energy Performance Certificates (EPC's)
Why are EPC's required?
An EPC is a legal requirement when a building is constructed, sold or rented out. You must order an EPC for potential buyers and tenants before you market your property to sell or rent.
What is the purpose of an EPC?
EPC’s certify how energy efficient a property is by using a rating system. The rating is shown on an A–G rating scale similar to those used for fridges and other electrical appliances with A being the most efficient. The EPC includes recommendations on how to improve the energy efficiency. There is no statutory requirement to carry out any of the recommended energy efficiency measures stated.
EPC's are separated into two types:
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Domestic Energy Performance Certificates (EPC)
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Non-Domestic Energy Performance Certificates (EPC)
Domestic Energy Performance Certificates are required when a domestic house or dwelling is being constructed, sold or rented out.
An EPC is also required when applying for one of the following:
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Feed in Tariff (Fits)
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Renewable Heat Incentive (RHI)
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Green Deal.
Non-Domestic Energy Performance Certificate
The seller or landlord must provide an EPC free of charge to a prospective buyer or tenant at the earliest opportunity when the property is constructed, sold or rented out. There are three levels of assessment, Level 3, Level 4 and Level 5. The complexity and the services used by that building will determine which level the building falls under.
Validity of EPC's
EPC's are valid for 10 years and can be reused as required within that period. A new EPC is not required each time there is a change of tenancy, or the property is sold, provided it is no more than 10 years old.
Where more than one EPC is produced, the most recent EPC is the valid one. You can be fined if you don’t get an EPC when you need one.
The person selling or letting the house or property, must show you the EPC if you’re buying or renting the property.
Who can produce an EPC?
Only an accredited assessor can produce an EPC.
Minimum Energy Efficiency Standards (MEES)
From April 2018, any commercial building or domestic property made available for rent must have an EPC rating of Band E or above. If the rating is an F or G, the property cannot be legally let until improvements have been made to the property and the EPC rating is consequently improved to the Minimum Energy Efficiency Standards of an E rating or above.
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The regulation is aimed at encouraging landlords and property owners to improve the energy efficiency of their properties by restricting their ability to extend or create a new lease if the EPC rating does not meet the minimum requirement.
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There are some situations where it is not financially viable to achieve the necessary EPC rating and therefore exemptions may be allowed, but this is not the norm for the majority of landlords who will be expected to meet the requirements.
In scenarios where a property fails to achieve the minimum requirement we will not upload the EPC to the Landmark register, as is the usual procedure, but will instead issue a draft copy of the EPC to the client with a list of potential improvements setting out how they can enhance the energy efficiency of the property and improve the outcome of the EPC to meet the MEES regulations.