Pennine Energy ReportsTel: 01282 861884/843540

Mob: 07710482243/07947958007Web: www.energyreportspennine.co.uk

Energy Performance Certificates Explained

A Guide for Rental Portfolio Holders and Rental

Management Companies

About us

• We are a Local company based in Pendle serving the North Lancashire and West Yorkshire areas . Our EPCs are completed by fully accredited and insured Domestic Energy Assessors .

• The assessments and subsequent reports are prepared by my colleague and I and we have have a wealth of local experience serving the people of Pendle, East Lancashire and West Yorkshire in various capacities.

Our Aims

• Confirm an appointment within 24 hrs of instruction or the next working day

• Provide the Energy Performance Certificate within three days of the inspection

• To work with Portfolio Holders,Rentals Management Companies.solicitors, estate agents and other EPC stakeholders ,in a professional efficient manner

Key Points• The governments intention is to bring EPCs for rented properties into

force on the 1st of October, 2008.

• The EPC is an EEC directive that binds the government to implementation, so in essence in October 2008 the EPC will become mandatory for rented property.

• The existing time limit for an EPC is currently 10 years in respect of rented properties and 12 months for the sales of residential properties

• Property management companies registered social landlords and other landlords will have to manage this requirement.

• There will be a £200 fine for non compliance

Domestic Energy Performance Certificates

• Introduced as part of EU Directive to help combat climate change• Energy Performance of Buildings (Certificates and Inspections)

(England & Wales) Regulations 2007• All landlords will be required by law to provide an EPC for all buildings

or parts of buildings when they are rented out from 1st October 2008• Domestic EPC consists of:

▫ Energy efficiency rating on a scale from A to G▫ Environmental impact rating on a scale from A to G▫ Details of the property features▫ Recommendations for improvements

• EPCs can only be produced by Domestic Energy Assessors that are fully qualified and accredited by an authorised government scheme

• Currently valid for 10 years

Example EPC

Potential energy efficiency rating

Current energy efficiency rating

Potential environmental impact rating

Current environmental impact rating

Table showing current and potential energy usage, energy cost and CO2 emissions based on standardised occupancy

Example EPC

Recommendations – lower cost (under £500) – details potential savings and potential new rating

Recommendations – higher cost (over £500) – details potential savings and potential new rating

Further recommended measures to achieve even higher standards

The Energy Assessment

• A visual inspection of internal and external features of the property▫ Size and construction type▫ Insulation present – walls and roof space▫ Heating and lighting systems▫ Glazing

• Takes between 45 and 60 minutes depending on property size and construction

• Data collection including:▫ Notes▫ Photographs▫ Measurements

Who needs an EPC?

• The EPC is a mandatory component of the Home Information Pack, which is required for most domestic property that is marketed for sale

• Current exclusions:▫ No marketing involved e.g. sale to family members▫ Seasonal and holiday accommodation▫ Mixed sales e.g. shop with flat▫ Right to buy and similar sales▫ Portfolio of properties▫ Properties not being sold with completely vacant possession▫ Unsafe properties and those to be demolished

• From 1st October 2008, all properties being sold or rented will require an EPC

Legal obligations

• From 1st October, the landlord becomes responsible for ensuring a valid EPC is made available free of charge to any prospective new tenants at the earliest opportunity and no later than:▫ When any written information about the building is provided in response to a

request for information received ▫ When a viewing is conducted▫ If neither of these occur, before entering into a contract to sell or let

• An EPC does not have to be made available if:▫ The landlord believes the prospective tenant is unlikely to have sufficient funds to

rent the property or is not genuinely interested in renting that type of property▫ The landlord is unlikely to be prepared to rent out the property to the prospective

tenant

• An EPC is not required when a renewal of existing tenancy occurs• Once an EPC is obtained for a property, a new one is not required on

subsequent changes of tenant for the period that the certificate is valid• Fines for non-compliance charged at £200 per offence

EPCs for commercial properties

• Introduced as part of the same legislation• Similar format to domestic EPCs with A to G rating• Can only be provided by a suitably qualified and accredited Non-Domestic Energy

Assessor▫ Different levels of qualifications reflecting knowledge required for different levels of

building complexity Level 3 – simple existing non-dwellings with commonly occurring characteristics (using SBEM) Level 4 – larger buildings with more complex distributed air conditioning units and new build non-

dwellings (using SBEM) Level 5 – Large highly complex buildings modelled using Dynamic Simulation Model

• Implementation schedule for commercial properties▫ 06/04/08 – floor area greater than 10,000m2 ▫ 01/07/08 – floor area greater than 2,500m2 ▫ 01/10/08 – all remaining buildings

• Properties with a total useful area of 50m2 are exempt• Non-compliance can result in fines of 12.5% of the rateable value of the building

Why choose us ?

Because we offer……………….• Local Service• Local Knowledge• Experience• Reliability• Competitive Pricing

Contact Information

Pennine Energy Reports

Tel: 01282 861884/843540Mob: 07710482243/07947958007

Web: www.energyreportspennine.co.uk