Providers of Energy Performance Certificates in the South East

Specialists in Domestic and Commercial EPCs

RENTAL EPCs

Who needs an EPC (Energy Performance Certificate)

Domestic:

Any Landlord who wishes to enter into a new-let agreement on a dwelling which is not due for demolition must have a valid EPC.  An EPC is not required for a lease/tenancy extension where the original agreement was entered into before 1 October 2008 and has been continuous since.  (Demolition means that the property has been demonstrated to be suitable for demolition, that the resulting site would be suitable for redevelopment and that all necessary permissions are in place for both demolition and the redevelopment)

An EPC used for domestic rental purposes is valid for 10 years from the date of issue but if subsequently used for the sale of that property, is only valid for 3 years.

If a dwelling is part of a commercial EPC then it’s EPC is valid for 10 years, sale or rental (see details below (commercial) for instances where this may be the case).

Commercial:

A commercial building which requires an EPC when let in whole or part, is defined as a building with a roof and walls that uses energy to condition the indoor climate of the building by heating, air conditioning or mechanical ventilation.  An EPC is not required for a lease/tenancy renewal or extension where the original agreement was entered into before 1 October 2008 and has been continuous since. 

Exceptions which may not require a commercial EPC.

  • A building which is not complete but an EPC will be required when complete.
  • A place of worship.
  • Stand-alone buildings with a total useful floor space of less than 50m².
  • Industrial sites, workshops and non-residential, agricultural buildings with low energy demand.
  • Temporary buildings with a planned life of less than 2 years.
  • Buildings due for demolition.

Multiple tenancies and commercial, domestic mix.

When selling or letting part of a building which has a heating system in common with the rest of the building then an EPC can be produced for the whole building and made available to the sub-lessee/tenant.

When selling or letting part of a building which has it’s own heating system then a seperate EPC should be prepared for that area.  There should also be a seperate EPC for any common areas that are provided for access to that area.

When selling or letting a whole building a single EPC can be produced even if some areas within the building have their own heating systems.  If there is a common heating system then the EPC can subsequently be used for any part of that building.

If a commercial building has residential accomodation within it, then:

If the dwelling has it’s own external entrance it should have it’s own EPC based on SAP or rdSAP even if it shares the commercial premises’ heating system.

If the dwelling can only be accessed via the commercial premises then a single EPC should be produced using SBEM.

Who can provide an EPC?

EPCs can only be provided by Energy Assessors who are appropriately trained and accredited.  Accreditation by an approved body ensures that the assessor is appropriately trained, has been checked for a criminal record with the CRB (Criminal Records Bureau) or a similarly approved body and has appropriate insurance.  It is only such accredited assessors who have access to the national computer system permitting them to lodge energy assessments and produce EPCs.

Home Inspectors Southern assessors are trained by BRE (Building Research Establishment) in conjunction with UWE (The University of the West of England), are accredited by BRE Global and carry photo ID provided by BRE Global, available for inspection at any time.

Penalties for not making an EPC available.

The penalty for not making an EPC available to a prospective purchaser or tenant when selling or letting a commercial premises is fixed.  In most cases the penalty is fixed at 12.5% of the rateable value of the premises (minimum £500 and maximum £5,000).  Default penalty of £750 if the formula can not be applied.  An EPC will still be required.

SUMMARY

  • Any Landlord who wishes to enter into a new-let agreement must have a valid EPC (unless due to be demolished or is an exempt, commercial property of a type described above). 
  • An EPC is not required for a lease/tenancy extension or renewal (when the original agreement was entered into before 1 October 2008).
  • An EPC used for domestic rental purposes is valid for 10 years from the date of issue but if subsequently used for the sale of that property, is only valid for 3 years.
  • If a dwelling is part of a commercial EPC then it’s EPC is valid for 10 years, sale or rental.
  • A single commercial EPC can be used for sub-letting parts of a commercial building with a common heating system.
  • The landlord is the ‘relevant person’ and is therefore responsible for making an EPC available.  The landlord is liable to a penalty charge if an EPC is not made available (not the agent).
  • The most recent EPC is the only valid EPC.