Energy Performance Certificate - What Is It and When Do You Need One?

What Is an Energy Performance Certificate?

An Energy Performance Certificate indicates how energy-efficient your property is.

It contains information about energy usage, along with recommendations to reduce energy usage and save money. The energy efficiency rating runs from A (most efficient) to G (least efficient).

An Energy Performance Certificate is valid for 10 years.

When Is an Energy Performance Certificate Required?

An Energy Performance Certificate must be commissioned whenever a property is built, sold or rented.

The government believes that choices to buy or rent a property are influenced by its energy performance rating. In fact, it is illegal to let a property that has an rating below E.

For these reasons, sellers and landlords are required to:

• commission an Energy Performance Certificate before marketing a property (if there is no valid Energy Performance Certificate already)
• specify the energy performance rating in any advertisement of the property
• provide prospective buyers or tenants with a valid Energy Performance Certificate for the property

Are There Any Exceptions?

Some properties are exempt from the above requirements and include, amongst others:

• properties which are used for less than four months in the year (such as holiday lets)
• buildings which are earmarked for demolition

What If I Fail to Comply?

You could receive a penalty charge notice if you fail to comply with your obligations. The penalty may vary depending on whether the property is a dwelling or a commercial property.

The enforcement authority may instead take a light touch approach and give you some time to comply. However, it is always better to comply in the first place to avoid the risk of reputational damage.

If you are buying a  property and would like more information surrounding Energy Performance Certificates, please contact Aditi Sawjani in our Commercial Property team on 01923 919 319, or complete the form below.