Although energy performance certificates (EPC’s) relate to the Housing Act 2004, they were introduced through The Energy Performance of Buildings (Certificates and Inspections) (England and Wales) Regulations 2007, which is part of European legislation (the Energy Performance of Buildings Directive - which all member states must adopt).
EPC rules have changed for landlords & letting agents
From 6 April 2012 changes to the legislation on energy performance certificates (EPCs) were introduced to make it easier for consumers to save money on their fuel bills.
Below are the key points in the new legislation:
An EPC must be commissioned before marketing a property for rent
Unless you already have an EPC available you must commission an EPC from an EPC provider before you first put the property on the market for rent.
An EPC should be made available within seven days of a property first coming on to the market
You must make reasonable efforts to make sure that an EPC for the property is available within this seven day period. If, despite using all reasonable efforts you cannot secure that an EPC is available at the end of this seven day period you must make sure that the EPC is obtained before the end of a further period of 21 days. Therefore, there is an absolute duty to make sure that it is available within 28 days of the property first being marketed.
An EPC must be available to any prospective tenant as early as possible
In particular it must be made available when a prospective tenant requests information or asks to view the property. A copy must be handed over to the tenant before signing the tenancy agreement. These rules have always been in place but many of mistakenly thought different. The rules have therefore been amended to make it clear what must be done.
Agents must be satisfied that the landlord has commissioned an EPC or has one available before marketing the property on their behalf
It becomes the responsibility of a letting agent to ensure that this has been done.
The front page of the EPC must be attached to any written particulars
The first page of the EPC must be made available with any written particulars
In relation to a building to be rented out, the duties apply to any written description of the property which includes at least two of the following:
- a photograph of the building or any room in the building,
- a floor plan of the building,
- the size of the rooms in the building,
- the measured area of the building, or
- the proposed rent.
The wording of the legislation indicates that this does not apply to written advertisements such as those in newspapers magazines or to window displays.
When given in hard copy form this only applies when given to a specific individual who is interested in the property.
If advertising online alongside the written particulars a copy of the EPC must be provided. This applies if what you display online amounts to written particulars (see above for the definition). Therefore, if, for example, you display a photograph and give the rent online the first page of the EPC must also be made available. You must actually have an EPC before displaying written particulars online. The operator of the EPC Register has provided a technical solution which enables letting agents to retrieve EPCs from the register and attach them online. This is not available to individual landlords; only agents.
Note: You can reduce the EPC in size so long as it is legible when attaching it to written particulars or displaying it online. It can also be in black and white or colour. Only the first page need be provided; not the rest of the Certificate.
Evidence of commissioning an EPC must be available on request to Trading Standards Officers (TSOs)
TSOs have the power to investigate, require the production of EPCs and serve penalty notices. The penalty is £200 for residential buildings. This now extends to checking that an EPC has been commissioned.
The first page of the EPC has been re-designed.
This will be issued from April 1. Unlike the old EPC, the new one contains the financial savings that would be made if the suggested energy improvements are carried out.
These new Rules only apply to properties which are first marketed for rent on or after the 6 April 2012. They do not apply if the property is already on the market for rent.
Similar rules apply if you are selling a property.
There are no changes, however, to the types of property for which an EPC is required.
Note: EPCs issued prior to the legislation changes are still valid.
For further details, please refer to the department for Communities and Local Government website: http://www.communities.gov.uk/publications/planningandbuilding/changesenergyperformance
For an example of the new look Energy Performance certificate click here:
http://www.communities.gov.uk/documents/planningandbuilding/pdf/2116821.pdf