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EU gets tough on Energy Performance Certificates

22 September 2010

It’s surprising the number of property transactions that go ahead without the seller or landlord giving any thought to providing an Energy Performance Certificate.

In most cases EPCs, as they are known, are mandatory – not an option. But general ignorance by the public, low penalties for non-compliance and lack of resources by trading standard officers charged with enforcement mean they are often deliberately ignored. And even if an EPC is commissioned, lip service is paid to adopting recommendations.

But now the EU has imposed more stringent obligations following its recent review of the Energy Performance of Buildings Directive and current 2007 regulations. These obligations will have to be part of each member state’s domestic laws by 9 January 2013.

They state that:

  • -an EPC must be available to a prospective buyer or tenant as soon as information is required about a property
  • -the EPC rating must be stated in all advertisements for the sale or leasing of building - including non-domestic properties
  • -in residential properties an EPC must be commissioned before a dwelling is put on the market. This will be extended to commercial properties and effectively could designate the property agent as being the responsible person so that the agent could face action from trading standards and not – as was the case previously – only the seller or landlord.

Whether these proposals will really add new teeth to the regime remains to be seen, though. In the present sluggish market an EPC isn’t enough to add any real value to a property. And subsequently, carrying out any recommendation is probably the least of a buyer’s or tenant’s concerns.

But one thing’s for sure. There is likely to be a more aggressive political will to ensure that the UK comes closer to its environmental targets and the movement to greater energy efficiency.

Perhaps compulsory compliance with recommendations won’t be too far off.

For further information about Energy Performance Certificates or any matter relating to property, please contact Andrew Gough, Partner & Head of Commercial Property on 01227 763939.

 

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