The Issue

From 1 July 2008 owners and landlords selling or letting commercial property with a ‘useful floor area’ exceeding 2,500 sq m will need to provide (free of charge) an Energy Performance Certificate (EPC) to all prospective buyers and tenants. EPCs will also be required for newly constructed and, in certain cases, modified property exceeding the same area.

This is the second key date for the introduction of EPCs for commercial properties, as they became mandatory for properties exceeding 10,000 sq m of useful floor area on 6 April 2008.

With a limited number of accredited ‘energy assessors’ currently available to produce EPCs, the 1 July deadline could create problems for many sellers and landlords.

So what can you do if you are in this situation ?

Well in the first instance check to see if any of the exemptions apply. Certain types of commercial buildings are outside the scope of the EPC regulations, these include industrial sites, workshops and non-residential agricultural buildings. Also lease renewals, extensions and surrenders will not be caught by the regulations, and if the property is due for demolition it may also be exempt.

Sellers and landlords can also defer the requirement for EPCs to 1 Oct (at the latest) if they put the property on the market before 1 July and it remains on the market.  In this situation the EPC can be provided after exchange to the new owner or tenant rather than in advance to all prospective buyers and tenants.

But beware, if you do still fail to provide an EPC when one is required, then it can result in a fine of up to £5,000, with subsequent fines at the same level for continued non compliance.

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