A P Herbert & Associates
Chartered Surveyors

PO Box 1, Harpenden
Hertfordshire, AL5 1HX
Tel/Fax 01582 764645

surveys@apherbert.co.uk

ENERGY PEFORMANCE CERTIFICATES (EPCs)

What is an Energy Performance Certificate (EPC)? | What buildings are affected? | What is their purpose?
EPCs for Residential Buildings | EPCs for Commercial Buildings

WHAT IS AN EPC?

The Energy Performance of Buildings Directive (EPBD) requires that all buildings have an Energy Performance Certificate (EPC) when they are marketed for sale, to let or on completion of their construction

WHAT BUILDINGS ARE AFFECTED?

There are some exceptions but essentially any building which would normally expect to be heated or provided with air-conditioning falls within the regulation. This includes residential buildings, commercial buildings and public buildings

WHAT IS THEIR PURPOSE?

Energy Performance Certificates have been introduced in an attempt to reduce greenhouse gases climate change. They advise potential buyers and tenants of the energy use of the premises they may wish to occupy. This can provide them with important information about the building such as; the energy efficiency, potential energy bills and possible improvements that could be made to improve these. With commercial buildings, comparing the EPC’s of buildings will prove a valuable asset to the premises departments of companies.

EPCs FOR RESIDENTIAL BUILDINGS

For residential sales, the EPC is included in the Home Information Pack. At A.P. Herbert and Associates we have been undertaking Domestic EPCs since their inception in 2007 following the advent of Home Information Packs (HIPs).

In all other circumstances (eg lettings), if the property is used for residential purposes, the EPC is still required but it is a stand-alone document. This means that with few exceptions the seller or the landlord must provide an EPC.FREE OF CHARGE to anybody who may request one. The responsibility to conform to the law is placed on the agent in residential matters.

Since August 2008, the regulations have encompassed rented properties as well even though there is no Home Information Pack.

All residential properties are assessed using the same formulae and assessment methods. The Domestic EPC displays the results in two parts, one showing the energy rating (on the left) and the second showing the impact which the building has on the environment. An example is shown below. To request a quote for an assessment and resultant Energy Performance Certificate on a residential building click here

EPCs FOR COMMERCIAL BUILDINGS

With regard to commercial premises, the legislation finally came into force on 1st October 2008 and, although there was a short transitional period until 4th January 2009, it is contrary to the regulations to market a property without an EPC having been ordered more than 14 days prior to the marketing or to have one available. Marketing is defined in the regulations as providing written details (eg. room descriptions and sizes) or arranging a viewing whether accompanied or not. As with residential properties, the EPC must be provided FREE OF CHARGE to anybody who may request one. The responsibility to conform to the law is placed on the seller in commercial matters not the agent as in residential matters.

Commercial properties (or, strictly speaking, non-domestic buildings) are split into several categories. These are:

  • Level 3 Buildings These have low output heating and air-conditioning systems
  • Level 4 Buildings These have more complicated heating and air-conditioning systems
  • Level 5 Buildings These have very complicated heating and air-conditioning systems and invariably include large expanses of glazing (The London Mayor’s office and "the Gherkin" are two examples)

New buildings, when they are completed, are required to have an EPC referred to as an On-Construction EPC.

Public Buildings in excess of 1000m2 also require an assessment referred to as a Display Energy Certificate. (DEC)

Each type of certificate requires different skills, though the most common buildings, probably around 70/80% of the commercial stock, are likely to fall within the Level 3 classification. It is important to note that the size of the building is not a relevance. A smallish building, say of 300m2 but of highly specialized use with a complicate air-conditioning system, might fall into Level 4, whereas a very large factory covering 50,000m2 is quite possibly a Level 3 building.

With commercial premises there is only one chart which looks similar to the residential ratings chart and there is a second chart which explains where the energy has used – lighting and heating for example. Please see below for example documents.

In order to gather the information for the certificate, the assessor needs to measure the overall area of the building. He then needs to measure each of the internal areas separately, as well as the height of each wall both internal and external. Whilst doing this he has to discover the thickness of the internal walls and their construction. He needs to determine what the existing insulation is and its quality, as well as the heating and cooling systems. He also needs to identify and categorise the use that each separate part of the building is put to even the entrance lobby and the toilets (they all use heat).

If you are in any doubt about the importance of getting the EPC right, it is worth understanding that if the EPC is substantially wrong, there could easily be a detrimental effect on the price or the rent you receive for the property. Energy Performance Certificates have existed in some countries for some time. Research in these other countries has shown that the EPC has an effect on values and the speed with which properties sell or let. When you come to sell a property, someone has dictated that you produce a piece of paper. The advice and recommendation on an EPC may be of little interest if you are selling but it is of interest to the buyer who can act on it and improve the performance of the building. Incorrect assessments come about because the assessor takes too little time because the fee is not adequate to support a careful inspection and parts of the inspection are omitted or the data is assumed. Unfortunately, many estate agents foster the view that the Commercial EPC is a nuisance to be dealt with as quickly as possible if it cannot be ignored. However, think about the other side of the legislation – the penalties. Failure to conform to the regulations invites a fine from the OFT of 12.5% of the Rateable Value with a minimum of £500. Be assured that, at A.P. Herbert & Associates, your Energy Peformance assessment will be carried out thoroughly, resulting in an Energy Performance Certificate you can rely on. After all, we teach new entrants into the industry how to do this - you're in the hands of the experts.

To find out in which Level your building would be included, or for a no-obligation quote, please click here

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A.P. Herbert & Associates, Chartered Surveyors, PO Box 1, Harpenden, Herts, AL5 1HX

A.P. Herbert FRICS DipHI carries out surveys, valuations and energy performance assessments of residential and commercial property in Hertfordshire, Bedfordshire and North London.


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