Where Do EPCs Come from and when Did they get Introduced?
Energy Performance Certificate were introduced 1St August 2007 along side the ill prepared Home information Packs (HIPS). EPCs continued to be a required piece of legislation when HIPS were dropped from legislation in May 2010.
They are a direct result of European Union Directive 2002/91/EC relating to the Energy performance of buildings, as transposed into British law by the Housing Act of 2004 and The Energy Performance of Buildings (Certificates and Inspections) (England and Wales) Regulations 2007 (S.I. 2007/991). 00100000fef
What are they?
An Energy Performance Certificate basically looks like a Graph. From A to G, with A being the most efficient and G being most inefficient. EPCs are lodged on the government central database called Landmark and are registered and accessible to the public for a period of 10 years.
When Do I need an EPC?
An EPC is a legally binding certificate and are triggered at Legal points such as when the property is to be built or marketed for sale or to be rented or whilst not legal however is now a requirement from Financial institutes when a property is to be refinanced.
What are the penalties for not having a valid EPC?
Under the new regulations Energy Performance Certificates (EPC) are under local authority in particular weights and measures. The fine for not having a Valid EPC at the legal trigger points vary from £5000 – £150,000 or 12.5% of the ratable value, whichever is highest.
Recent Changes for EPCs
Energy Performance Certificates have had new legislation attached called The Minimum Energy Efficiency Standards, these in principal add a minimum grade to the EPC for you to be able to lease / rent out your property. This Minimum grade is an E grade at the moment.
It is estimated 18% of all property fall in the F or G bands with a further 20% in the E band. With the impending update of the Building Regulations part L EPC grades will fall in our experience between half a grade to a full grade when this happens. Our estimates after this will be the a third of all properties will fail MEES and will need to be refurbished to a level that will pass MEES.
MEES does not legally affect properties up for sale however Banks and other financial Institutes will NOT lend against poorly rated buildings as they see it as a Toxic debt.
What Properties are Exempt from EPCs?
There are certain exemptions to Energy Performance Certificates
- Places of worship
- Temporary buildings that will be used for less than 2 years
- Stand-alone buildings with total useful floor space of less than 50 square metres
- Industrial sites, workshops and non-residential agricultural buildings that don’t use a lot of energy and are unoccupied. i.e. Gritting Salt Stores
- Some buildings that are due to be demolished
- Holiday accommodation that’s rented out for less than 4 months a year or is let under a licence to occupy
- Grade I listed buildings – you should get advice from your local authority conservation officer if the work would alter the building’s character
- Residential buildings intended to be used less than 4 months a year
BEST Compliance can confirm if your building falls under an exemption
What is the average grade for an EPC?
This is a very difficult question to answer as each building is different and will have merits on the lighting, Heating, Insulation, Location etc. However, the median grade of building EPC we give is around a D to an E grade, but as explained this will differ with every building.