From 1st October 2008 an EPC or Energy Performance Certificate will be a legal requirement for all new builds and will be required before a landlord may let or a home owner may sell their property. But… what does this mean for buyers and sellers, how much will it cost and what are the benefits?
The EPC is intended to augment the HIPs (Home Information Packs) which are designed to give prospective buyers access to key information about a property so no ‘little surprises’ appear later in the buying process- or indeed after the purchase. The EPC evaluates key features of the property such as the floor area, the construction of the walls, floor and roof whether or not the windows are double glazed, what sort of heating/hot water systems are installed and what sort of lighting the property utilises. The report grades the property on its energy efficiency and its environmental impact in the same way modern appliances are rated – A-G with A being the highest standard. Although the EPC is a further legislative hurdle for sellers, the impact of the EPC has been well received as it gives at-a-glance facts and figures to a prospective buyer and certainly recognises good practice and improvements implemented by the current owner.
A key feature of the EPC is its focus on possible improvements. One section of the report considers what improvements could be made and shows the potential savings to the home owner should they implement the improvements and the potential energy efficiency rating. Given the potential savings a home owner could make should they implement the recommendations of an EPC it is worth considering even if there is no intention to sell the property. An EPC is valid for ten years, so the investment may pay for itself several times over before it needs updating.
With effect from 4th January 2009 the Energy Performance of Buildings Directive dictates that a Commercial EPC will be required upon construction, sale or lease for all non-dwellings. This effects all properties from warehouses to office units. Although separate from a domestic EPC most EPC providers are licensed to provide both domestic and commercial certificates and some of the more established agents can provide not only the certificate but also carry out any improvements it suggests.
Tags: Commercial EPC, epc