Make Sure You Are Energy Efficient!

by Melanie Cosgrove

Head of Property Law Department at Widdows Mason

As anyone who has been trying to sell a property since December last year will know, all residential properties being marketed for sale since the 14th December 2007 require a Home Information Pack. Home Information Packs were introduced last Summer and were intended to speed up the conveyancing process. A Home Information Pack (HIP) includes important legal searches and an Energy Performance Certificate (EPC) providing information relating to the energy efficiency of a building. The Certificate includes an energy rating, similar to the ratings that you would expect to see on the front of a fridge or washing machine. The Certificate, which can only be provided by an accredited Energy Assessor, will also include a recommendation report which includes advice and suggestions on improvements that could be made to save money and energy.

The Regulations have now been extended to include the rental and commercial property sectors. From the 1st 0ctober, anyone who wants to sell, lease, construct or modify a property will have to supply an Energy Performance Certificate (EPC). This will include sub-letting. An EPC must be made available to any prospective buyer or tenant at the earliest opportunity and no later than when a viewing is conducted or when written information is provided about the building.

Where commercial properties are concerned, the type of information that the assessor will need in order to prepare the EPC will be a lot more detailed than for a residential property. The assessor will need detailed information on the dimensions and construction of the building, plus details of heating and ventilation services.

Unlike residential transactions, the EPC may well be used by tenants as a negotiating tool - perhaps to reduce the rent payable if the property is not energy efficient. There could also be scope for some landlord to try to increase the rent or the service charge for providing a "greener" property!

The penalty for not providing an EPC is fixed, in most cases, at 12.5% of the ratable value of the building, subject to a minimum penalty of £500 and a maximum of £5,000. And remember - even if a fine is imposed, the EPC will still be required! It is important to remember that it is the responsibility of the Seller or Landlord to provide the EPC - even if an estate agent or letting agent has been appointed - so be sure to double check that any agents acting on your behalf are complying with the Regulations.

Widdows Mason Solicitors are able to assist in all areas of property law, including the obtaining of Energy Performance Certificates. Why not call us today on 01925 632267.