|
The measures are being
introduced to comply with the EU Energy Performance of Buildings Directive
(EPBD). The Government says that nearly 50% of the UK’s energy consumption
arises from heating and lighting buildings. It believes that even minor
improvements in the energy efficiency of our 25 million buildings would
have a significant impact and help us to meet our targets to reduce carbon
emissions.
The changes will place
new responsibilities on anyone constructing a new building or selling or
renting out an existing property.
For example, when a
new building is completed, the person responsible for the construction
will need to obtain a certificate and provide it to the owner. This is
obligatory under Building Regulations. The same thing applies if a
building is converted into more or fewer units and there are changes to
the heating and hot water provision or to the air conditioning system.
When selling an
existing building, the owner will have to provide a certificate for all
prospective buyers. Landlords will have to do the same for prospective
tenants of commercial properties. However, there is no need to provide a
certificate for an existing tenancy; only for a new one. Commercial
property certificates are valid for 10 years and if they are still in date
when a tenancy changes there is no need to obtain a new one. The
regulations will be extended to landlords renting out homes from 1st
October.
The certificates have
to be provided by energy assessors who are accredited and registered with
a government approved scheme. The energy assessments are carried out using
standard methods making standard assumptions about energy usage so there
can be consistency when comparing the energy efficiency of different
buildings. It allows prospective buyers, tenants and occupiers to make
energy efficiency and potential carbon emissions a factor when deciding
which property to choose.
The Government hopes
this will provide a market pressure to encourage sellers to ensure a high
standard of energy efficiency to make the property more attractive to
potential buyers and tenants. The certificates are accompanied by
recommendations on how to improve the energy efficiency of the building.
There is also information about the energy rating that could be achieved
if the assessor’s recommendations were carried out.
The Energy Performance
Certificates should not be confused with Display Energy Certificates (DECs)
which show the actual amount of energy being used in a building. They will
be required from 1st October for buildings over 1000sq metres
occupied by a public authority or an institution that provides a service
to a large number of people. The certificates have to be displayed in a
prominent place where the public will be able to see them easily. The
Government may consult on whether to extend DECs to buildings occupied by
commercial organisations but has not done so yet.
Some buildings are
exempt from the regulations but not many. EPCs will not be required for
places of worship, stand alone buildings of less than 50sq metres (except
for homes), temporary buildings which won’t be used for more than two
years and buildings with a low energy demand such as barns and farm
outbuildings. In some circumstances, buildings due to be demolished may be
exempted.
Understandably, many
people regard the new regulations as yet another administrative burden.
For others, however, they are an opportunity to improve their chances of
selling or renting out a building by making it more energy efficient and
so more attractive to prospective buyers and tenants.
Whichever view one
takes, there is no escaping the need to comply.
Peter Sutherland is a Partner at Andersons Solicitors specialising in Commercial Property and Business matters. He can be contacted on 0115 988 6714 or by emailing
Peter
Sutherland.
We produce FREE monthly electronic newsletters including;
Private Individual,
Business and
Employment Law. You can register for
your copy online from our website
or e-mail
Carly Williams. | 
