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The question of whether or not an Energy Performance Certificate (EPC) is required for a particular commercial property transaction can be complex and confusing for landowners and landlords. EPC regulations aren’t easy to follow, and if you, as a seller or landlord, have any doubts it is always sensible to get legal advice – however, the guide below gives an overview of the requirements.
An Energy Performance Certificate (EPC) can be commissioned by both owners and occupiers of a property, and it shows information about the energy efficiency of a property, including both whole buildings and building units.
An EPC may be required in one or more of these circumstances:
A valid EPC must have been entered onto the EPC register no more than 10 years before the date it is made available. However, this does not apply where the same property has a new EPC issued causing the earlier EPC to become redundant, and to properties affected by a Green Deal plan.
There are 3 obligations imposed when a property is sold or is let:
These obligations do not apply to a new-build property where its first EPC is issued, however, they will apply when that property is sold or let by the person to whom the first EPC was issued.
An EPC must be made available at the earliest of:
If an EPC is not produced at any of these points, you must still do so, even if this is after completion.
Certain types of properties are exempt from the requirements of the EPC regulations and, save for properties due for demolition, are also exempt from the requirement to display an EPC in public buildings:
EPC regulations do not expressly exclude any types of property transaction, but guidance indicates that the following transactions are not considered to be a sale / letting:
Enforcing EPC regulations is carried out by Trading Standards Officers issuing penalty charge notices to those who fail to comply. There are limited excuses for non-compliance, and the penalty for failing to comply is currently set at £200 for a residential property and 12.5% of the rateable value of a commercial property (min/max penalty - £500/£5,000).
EPC regulatory requirements are not always easy to follow and if you have any doubts it is always sensible to obtain legal advice to ensure you move forward in the correct way. For more information on EPCs, or if you are intending to sell or let your property, or if you are intending to take a lease of property, please contact Bhaven Chauhan in our Commercial Real Estate team on 0161 214 6186 / email@example.com
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