Energy Performance Certificates

Since April 2007 Energy Performance Certificates (EPC’s) are required for all sales of residential property as part of HIPS. The regulations have now been extended further to include Commercial Lettings and Sales and Residential Lettings from 1^st October, 2008.

EPC’s are used to record how energy efficient a building or house is by providing a rating from A (most efficient) to G (least efficient) similar to the energy performance stickers found on white goods. The efficiency rating will be based on criteria including insulation, heating and ventilation systems.

EPC’s will be valid for 10 years. The EPC report will recommend cost effective measures to improve the energy rating of a property, however, they are not mandatory.

Commercial Property

This means that any commercial building constructed, let or sold including lease renewals will require an EPC from 1^st October 2008. It is the owner’s responsibility to procure the certificate and make it available. Most commercial landlords will be able to recover the cost from the tenant(s) either directly or via a service charge. If a property is vacant the landlord will have to meet the cost.

There are certain exemptions including buildings that only have hot water or electric lighting; buildings with a total ‘useful’ area of less than 50 sq m and industrial sites, workshops with ‘low’ energy demand. ‘Low’ still has to be defined.

Costs

These are examples of the costs of EPC’s for different commercial properties:

Lock shop 700 sq ft – Approx £300
Industrial unit of 5,000 sq ft – Approx £500
Office (centrally heated) of 2,500 sq ft - £600 - £800
Office (air conditioned) of 8,000 sq ft - £1250

These estimates assume that scale floor plans are available. There will be an additional cost if no plans are available.

For further information on EPC’s for commercial property, please contact Tim Alden or Richard Marks 01483 504200 x 4

Residential Property

Any property being marketed for letting (regardless of the type of tenancy subsequently secured – Assured Shorthold Tenancies, Company Lets or High Rent Contracts) from 1^st October will require an EPC. The Certificate must be available to show prospective tenants from this date.

Costs

For rental properties fully managed by mse, a highly discounted rate of £75 per property has been negotiated with a locally based Energy Assessor. The certification cost must be met by the landlord. Unlike Commercial leases these costs cannot be recovered from prospective tenants.

For further information on EPC’s for residential lettings, please contact Paul Chilton, Head of Residential Property Management 01483 504200 x3 or Sue Rosewell, Lettings Manager 01483 504200 x2