Tuesday, December 2nd, 2008
Landlords and developers now have to provide Energy Performance Certificates (EPCs) when they build, sell or rent out flats and commercial properties of all sizes.
EPCs have been required since 6th April this year for all new homes being built and also for the construction, sale or rent of commercial properties with a floor area of more than 10,000sq metres. On 1st July, the threshold was reduced to 2,500sq metres and now, since 1st October, the regulations apply to all remaining buildings apart from a few minor exceptions.
The changes 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 must obtain an EPC 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.
Landlords letting out rented accommodation must also provide EPCs for prospective tenants if the property concerned is self-contained. The certificates are not required for situations where the tenant rents a room and shares facilities.
Some buildings are exempt from the regulations but not many. EPCs are not 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.
For advice on all commercial property and property developing contact Paul Slot.
© Copyright 2008 Burt Brill and Cardens Solicitors