|
 PainSmith
Solicitors Legal Updates
Energy
Performance Certificates in Let Property SEE
ALSO: HIPS are history but EPC's are not - May 2010
SEE ALSO: Energy Performance Certificates for rental property SEE
ALSO: Building Energy Rating - Certificates in Ireland (BER) and
Northern Ireland and
Scotland SEE
ALSO: Diagnostic de Performance Energétique - DPE - France 
by
Dr David Smith of Pain Smith Solicitors* 25th
September 2008 From
1 October 2008 residential let property will require an Energy Performance Certificate
(EPC). The provisions are part of The Energy Performance of Buildings (Certificates
and Inspections)(England and Wales) Regulations 2007 SI 2007/991. This can be
found in full at www.opsi.gov.uk/si/si2007/uksi_20070991_en_1. The
requirement is set out in regulation 5 which demands that a prospective tenant
be provided with an EPC at the earliest opportunity and certainly prior to entering
into any contract to rent out the property. The
regulation goes on to state that the certificate must be provided at the earlier
of the prospective tenant being provided with written details about the building
or the prospective tenant viewing the building. If the prospective tenant consents
the certificate can be provided electronically, this presumably includes provision
via display on a website. Therefore the key trigger point in most cases will be
the provision of written details to the tenant and it is probably worth attaching
the EPC to all written details. EPCs
are provided by an approved Domestic Energy Assessor (DEA). DEAs will need to
undergo training and assessment by one of a number of government-approved organisations
and will then need to pay an annual subscription to maintain their status. Qualified
surveyors do not automatically qualify as energy inspectors but they will be able
to qualify more easily. Note
that the only requirement for let property is to provide an EPC and that no other
part of the HIPS regulations applies to rental property. EPCs remain valid for
10 years or until another certificate is produced for the same property. Therefore
agents and landlords must make sure they always have the most recent certificate
on file. EPCs for sales have a shorter lifespan of just 3 years. It is not wholly
clear whether these EPCs can be used for let property but there appears to be
no reason why a sales EPC cannot be reused for letting purposes thereby giving
it a new lease of life! The
upshot is that from October 2008 agents will need to get EPCs for properties that
they are marketing to new tenants. As the requirement is on marketing there should
be no need to get EPCs for current tenancies or renewals to the same tenants.
Equally, properties that have the tenancy agreement signed prior to 1 October,
even though the tenancy begins after 1 October should not require an EPC as they
will be off the market before the regulations take effect. The EPC will then need
to be renewed every ten years. Where properties enter the market prior to 1 October
the position is a little less clear. The
government has recently stated that they take the view that properties on the
market after 1 October 2008 will definitely be in need of an EPC although they
have stated that there will be a degree of latitude in allowing these properties
to get a certificate as soon as reasonably possible rather than requiring one
immediately on October 1st. Agent
should note however that the requirement to have an EPC before the contract is
signed is a strict one however. There
is absolutely no requirement for the EPC to be at a specific level, for the landlord
to seek to improve the rating, or for the tenant to be compensated for a poor
rating. Landlords who wish to improve their rating should concentrate primarily
on boilers and insulation making sure that they have the most efficient condensing
combination boiler available and ensuring that all parts of the property are insulated
to minimum building regulations standards. The rating system produces a far greater
effect for installation of items than it does for their improvement, so installing
insulation where there is none will produce a greater effect than adding more.
In
terms of the practical position there will be a large number of EPCs required
as the regulations come into force and this will then tail off after a few months
as many properties coming onto the market will have their own EPCs already from
previous sale or rental. Agents
will need to consider the best way to deal with the initial spike and then how
they will handle matters long-term. Most agents will be best to contact their
HIPs provider (if they have a sales arm) or make an arrangement with an energy
inspector in their area. Larger agents, who anticipate a significant volume of
work, may be better to consider employing an energy inspector 'in-house' on a
short-term contract to cover the initial rush and then contract the work out once
this has been dealt with. Not
having a certificate is a criminal offence punishable by a fine. This is enforced
by local authority Trading Standards departments. On balance, they are unlikely
to take aggressive action on those who mistakenly fall foul of the legislation
provided they come into line swiftly once they have been warned. Agents
should put suitable clauses into their Terms of Business and Tenancy Agreements
to cover this situation. Suggested samples are available in our Document Vault
for Helpline subscribers
or to purchase. Remember
that this only applies to residential properties available for letting. The rules
for commercial properties and properties for sale are totally different. ©PainSmith
Solicitors 2008 *Dr
David Smith is a trainee solicitor with PainSmith Solicitors, a niche practice
specialising in residential landlord and tenant law. PainSmith
Solicitors Legal Advisors are provided for information only and are not legal
advice. If you do have a legal problem, you should talk to a lawyer or adviser
before making a decision about what to do. PainSmith
Solicitors Legal Updates are provided for information only and are not legal advice.
If you do have a legal problem, you should talk to a lawyer or adviser before
making a decision about what to do. You may wish to use the CLS/CDS Directory
(www.justask.org.uk/public/en/directory) to locate an adviser. The information
provided here is written for people resident in, or affected by, the laws of England
and Wales only. You should note that date given in the update and be aware that
the information given may become inaccurate due to changes in the law or its implementation.
28
August 2008
by
Dr David Smith of Pain Smith Solicitors* From
1 October 2008 residential let property will require an Energy Performance Certificate(EPC).
The provisions are part of The Energy Performance of Buildings (Certificates and
Inspections)(England and Wales) Regulations 2007 SI 2007/991. This
can be found in full at http://www.opsi.gov.uk/si/si2007/uksi_20070991_en_1
The requirement is
set out in regulation 5 which demands that a prospective tenant be provided with
an EPC at the earliest opportunity and certainly prior to entering into any contract
to rent out the property. The regulation goes on to state that the certificate
must be provided at the earlier of the prospective tenant being provided with
written details about the building or the prospective tenant viewing the building.
If the prospective tenant consents the certificate can be provided electronically,
this presumably includes provision via display on a website. Therefore the key
trigger point in most cases will be the provision of written details to the tenant
and it is probably worth attaching the EPC to all written details. EPCs
are provided by an approved Domestic Energy Assessor (DEA). DEAs will need to
undergo training and assessment by one of a number of government-approved organisations
and will then need to pay an annual subscription to maintain their status. Qualified
surveyors do not automatically qualify as energy inspectors but they will be able
to qualify more easily. Note
that the only requirement for let property is to provide an EPC and that no other
part of the HIPS regulations applies to rental property. EPCs remain valid for
10 years or until another certificate is produced for the same property. Therefore
agents and landlords must make sure they always have the most recent certificate
on file. The
upshot is that from October 2008 agents will need to get EPCs for properties that
they are marketing to new tenants. As the requirement is on marketing there should
be no need to get EPCs for current tenancies or renewals to the same tenants.
The EPC will then need to be renewed every ten years. Where properties enter the
market prior to 1 October the position is a little unclear. Experience from the
introduction of HIPs suggests that there will be no need to produce EPCs for these
properties but the regulations do not say this specifically and so it would be
safest to get an EPC for all properties on the market after 1 October. There
is absolutely no requirement for the EPC to be at a specific level, for the landlord
to seek to improve the rating, or for the tenant to be compensated for a poor
rating. Landlords who wish to improve their rating should concentrate primarily
on boilers and insulation making sure that they have the most efficient condensing
combination boiler available and ensuring that all parts of the property are insulated
to minimum building regulations standards. The rating system produces a far greater
effect for installation of items than it does for their improvement, so installing
insulation where there is none will produce a greater effect than adding more.
In
terms of the practical position there will be a large number of EPCs required
as the regulations come into force and this will then tail off after a few months
as many properties coming onto the market will have their own EPCs already from
previous sale or rental. Agents will need to consider the best way to deal with
the initial spike and then how they will handle matters long-term. Most agents
will be best to contact their HIPs provider (if they have a sales arm) or make
an arrangement with an energy inspector in their area. Larger agents, who anticipate
a significant volume of work may be better to consider employing an energy inspector
'in-house' on a short-term contract to cover the initial rush and then contract
the work out once this has been dealt with. Not
having a certificate is a criminal offence punishable by a fine. This is enforced
by local authority Trading Standards departments. On balance, they are unlikely
to take aggressive action on those who mistakenly fall foul of the legislation
provided they come into line swiftly once they have been warned. Agents
should put suitable clauses into their Terms of Business and Tenancy Agreements
to cover this situation. Suggested samples are available in our Document Vault
for Helpline subscribers or to purchase. ©PainSmith
Solicitors 2008* 29
January 2008
by
Dr David Smith of Pain Smith Solicitors* Energy
Performance Certificates in Let Property Many landlords and agents will be aware
that property that is for sale in England & Wales requires an Energy Performance
Certificate (EPC) to be supplied to the purchaser as part of the Home Information
Pack (HIP). This requirement will be applied to let property during the course
of 2008, both residential and commercial The
provisions are part of The Energy Performance of Buildings (Certificates and Inspections)(England
and Wales) Regulations 2007 SI 2007/991. This can be found in full at http://www.opsi.gov.uk/si/si2007/uksi_20070991_en_1.
The
requirement is set out in regulation 5 which demands that a prospective tenant
be provided with an EPC at the earliest opportunity and certainly prior to entering
into any contract to rent out the property. The regulation goes on to state that
the certificate must be provided at the earlier of the prospective tenant being
provided with written details about the building or the prospective tenant viewing
the building. If the prospective tenant consents the certificate can be provided
electronically. Commercial
properties with a useful floor area of more than 1,000 sq metres which are occupied
by public authorities or institutions providing public services are also required
to produce a Display Energy Certificate which must be prominently displayed in
the premises. This is unlikely to be an issue for readers of this update. EPCs
are provided by accredited energy inspectors as they are for HIPs. Note that a
domestic energy inspector cannot provide a commercial EPC and vice versa. Energy
Inspectors will need to undergo training and assessment by one of a number of
government-approved organisations and will then need to pay an annual subscription
to maintain their status. Qualified surveyors do not automatically qualify as
energy inspectors but they will be able to qualify more easily. Note
that the only requirement for let property is to provide an EPC and that no other
part of the HIPS regulations applies to rental property. EPCs remain valid for
10 years or until another certificate is produced for the same property. Therefore
agents and landlords must make sure they always have the most recent certificate
on file. The
regulations come into force for commercial premises with a useable floor area
in excess of 500 sq metres on 6 April 2008 and for all other premises, including
residential properties, on 1 October 2008. There have been suggestions that these
provisions may be delayed but this will most likely only be done for the April
date and there is unlikely to be any delay over introduction of EPCs for residential
lets. The upshot is that from October 2008 agents will need to get EPCs for properties
that they are marketing to new tenants. There will be no need to get EPCs for
current tenancies or renewals to the same tenants. The EPC will then need to be
renewed every ten years. In
terms of the practical position there will be a large number of EPCs required
as the regulations come into force and this will then tail off after a few months
as many properties coming onto the market will have their own EPCs already from
previous sale or rental. Agents will need to consider the best way to deal with
the initial spike and then how they will handle matters long-term. Most agents
will be best to contact their HIPs provider (if they have a sales arm) or make
an arrangement with an energy inspector in their area. Larger agents, who anticipate
a significant volume of work may be better to consider employing an energy inspector
'in-house' on a short-term contract to cover the initial rush and then contract
the work out once this has been dealt with ©PainSmith
Solicitors 2008* *Dr
David Smith is a trainee solicitor with PainSmith Solicitors, a niche practice
specialising in residential landlord and tenant law. PainSmith
Solicitors Legal Advisors are provided for information only and are not legal
advice. If you do have a legal problem, you should talk to a lawyer or adviser
before making a decision about what to do. PainSmith
Solicitors Legal Updates are provided for information only and are not legal advice.
If you do have a legal problem, you should talk to a lawyer or adviser before
making a decision about what to do. You may wish to use the CLS/CDS Directory
(www.justask.org.uk/public/en/directory) to locate an adviser. The information
provided here is written for people resident in, or affected by, the laws of England
and Wales only. You should note that date given in the update and be aware that
the information given may become inaccurate due to changes in the law or its implementation.
17
March 2008
by
Natalie Lewis of Pain Smith Solicitors* Energy
Performance Certificates Update - Commercial Properties
Many agents and landlords
will be aware there have been rumours circulating over the past couple of weeks
that the requirement for properties to have an Energy Performance Certificate
has been delayed. The
requirement for commercial properties to have an Energy Performance Certificate
was due to come into force on 6 April 2008, however, this appears to have been
delayed.At present it is not clear as to when this will come into force. The
reason for this delay is that there appears to be insufficient numbers of trained
energy assessors, particularly at the higher levels dealing with more complex
buildings. In
regards to residential properties the requirement for properties to have an Energy
Performance Certificate is still due to come into force on 1 October 2008. There
does not appear to be any information circulating that this will be delayed.
It is highly unlikely that this date will be pushed back at all, because the Energy
Performance Certificates that are required for let property are the same as for
properties for sale, which are already required to have a Certificate.
There are significant numbers of Domestic Energy Assessors qualified and more
in training so the need is anticipated to be fulfilled easily. Another reason
why it is unlikely to be delays in the introduction of residential EPC's is that
the process must be in place by January 2009 or England and Wales will be in breach
of European Directives, which these measures are intended to bring into force.
As commercial properties are not the main concern of the readers of this update
it is unlikely that there will be any effect on when you need to ensure the property
has an Energy Protection Certificate. Natalie Lewis is a paralegal with PainSmith
Solicitors, a niche practice specialising in residential landlord and tenant law.
©PainSmith
Solicitors 2008* *PainSmith
Solicitors Legal Advisors are provided for information only and are not legal
advice. If you do have a legal problem, you should talk to a lawyer or adviser
before making a decision about what to do. PainSmith
Solicitors Legal Updates are provided for information only and are not legal advice.
If you do have a legal problem, you should talk to a lawyer or adviser before
making a decision about what to do. You may wish to use the CLS/CDS Directory
(www.justask.org.uk/public/en/directory) to locate an adviser. The information
provided here is written for people resident in, or affected by, the laws of England
and Wales only. You should note that date given in the update and be a See
also: ________________________________ *See
also Section 13 Notices and Is the deal closed? The use of the 'Subject
to Contract' formula- For
full article Click
Here ________________________________ *See
also Safety Glass and Defective Premises Act - The Information on
a Court of Appeal decision (7th February 2007) regarding the Defective Premises
Act 1972 For full article Click
Here ________________________________ *See
also Implementation of the Regulatory Reform (Fire Safety) England & wales)
Order 2005 Click
Here ________________________________ *See
also Understanding
Business Tenancies June 2007 Click
Here ________________________________ *See
also Duty of Landlords To Mitigate Loss Click
Here __________________________ See
also Arbitration - April 2008 - by David Smith - Pain Smith Legal update Click
here *
Articles
courtesy of PainSmith Solicitors are a
niche practice specialising in Landlord and Tenant Law. Based in Medstead in Hampshire,
they are ideally situated to provide an efficient service to clients nationwide
as well as those based in Central London and the Home Counties.
See
also: Statutory
code of Practise on racial equality in housing ARLA’s
Response to the Law Commission Report - August 2008 and
The
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to Property Articles Back
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