It is a legal requirement to have a valid EPC in order to market your property for sale or to rent in the private sector, this applies to both residential and commercial properties. It is also a requirement to have a valid EPC if your property already has existing tenants in place.

If your property is newly built, a EPC will be attained by carrying out SAP calculations. These calculations make sure your building complies with Part L of The Building Regulations.

If you convert or extend your property, you will need to get an updated EPC, irrespective of the fact if the property already has one. Generally, residential properties need an updated EPC every ten years. However, if there is a major change to the building services, such as a newly installed heating system, an EPC assessment may need to be conducted sooner.

The Department of Finance (DOF) and district councils have the duty to enforce the requirements of the EPC regulations. District councils enforce in relation to all but their own relevant public buildings in which case the DOF is the enforcement authority.

Failure to comply with the regulations or non-compliance with requests to produce relevant documents from an enforcer may result in the issue of a penalty charge notice.

In the case of a dwelling, the penalty is £200 and for non-dwellings it is 12.5 per cent of the net annual value, for each breach of failing to:

• Make available, free of charge, a valid EPC to any prospective buyer or tenant.
• Give free of charge, a valid EPC to the person who ultimately becomes the buyer or tenant.
• Providing an EPC to the owner of the building not more than five days after the work has been completed.
• Make available or give, free of charge, a recommendation report to accompany a valid EPC.

Finding out if you have a valid EPC and the expiry date can be done online. All EPC certificates are logged onto the national database. This service is free of charge and will include the full contents of the EPC.

You can check the EPC online register for Domestic/Residential properties here: find-energy-certificate.digital.communities.gov.uk

For Non-Domestic/Commercial buildings you can check the database here: find-energy-certificate.digital.communities.gov.uk

Energy Performance Certificates are important because they allow prospective buyers and tenants to access the energy efficiency of a building before deciding whether they want to live in such a property.

It is in a landlord's best interests for their properties to be as energy efficient as possible, as this will appeal to tenants. The prospect of lower energy bills and a warmer, better insulated property will always prove lucrative to tenants. And if the landlord ever experiences a void period, and must cover the energy bills, the landlord will also benefit from the energy savings.
It is in the interests of both landlords and homeowners (especially those who plan to sell their property at some point) to continue to improve the energy efficiency of their properties to achieve a higher rating where necessary. While the minimum energy rating is currently E, this is likely to change in the coming years, as the government strives to reduce carbon emissions through improving the energy efficiency of properties. EPCs play a vital part as they incorporate suggestions on making a building more energy efficient thus reducing the energy usage of that building, which will ultimately make the property more attractive prospect should an owner decided to sell.

For existing buildings, the energy assessor must undertake a physical survey of the building to gather the appropriate information. For new buildings, the energy assessor will have accurate plans, specifications and other relevant information and a site visit is not required. 

During the visit the energy assessor will need to access all the rooms, the boiler and the loft (if there is safe access). The assessor may take photographs of items, such as heaters and meters, and may take photographs of any unusual features in the building. The energy assessor may also photograph any area that cannot be accessed or visually inspected (i.e., a fully boarded loft). 

A visual assessment may not be possible for all features (i.e., cavity wall or under floor insulation) and without supporting information and evidence, such as receipts, the energy assessor will not be able to include that feature within the remnants of the EPC. 

If access to inspect parts of the building is not possible, (i.e., safe access to the loft to determine if it has been insulated is not possible), an assumption will be made about those features based on the age, type and other factors pertaining to the building. Energy assessors are not required to take unnecessary risks when undertaking an energy assessment.

The energy assessor will need know how the home was built. Providing this supporting information before the energy assessor visits will ensure you get the most accurate energy efficiency rating for your building. If you have up to date information this process will be less time consuming. The energy assessor is responsible for ensuring the information used in the energy calculations are accurate and, even where detailed plans are available for existing buildings, they must validate the information provided. 

The assessor will need to know: 

• When the building was built (searches or deeds may provide evidence). 
• Whether or not the building has been extended and when. 
• If it has been double glazed, checking any certificates that may be available. 
• Whether the walls have been insulated and if so whether this is cavity, internal or external insulation. 
• When boilers and hot water cylinders were installed and their make and model (any manuals may provide evidence). 
• The location of room thermostats and heating timers. 
• The location of gas and electricity meters.
• The type of heating fuel you use and the types of heating you use for your rooms.

Once the assessment is completed the data is input into the government approved software programme. The software will produce the EPC and recommendations using the data collected. 

The government approved software programme uses data, together with standard performance tables, to assess the energy performance of the building which in turn produces the EPC and recommendations. The software also generates a 20-digit non-sequential reference number from the data. 

The energy efficiency of buildings is assessed using a method known as Standard Assessment Procedure (SAP). SAP is used during the construction process to demonstrate that a new building meets energy efficiency targets. New buildings typically have a lot of information readily available for the calculation, such as detailed floor plans and specifications. Most new buildings complying with current Building Regulations will achieve a C or B rating. If new buildings are being specifically promoted as being environmentally friendly, you should expect them to be at the top end of the B band or possibly in the A band. When a building is constructed, the EPC must always be based on the full range of information required. 

For existing buildings much of the information required to assess the energy performance is not readily available so a survey is needed to collect it. To minimise inconvenience for the homeowner, the method to assess the energy performance was adapted to include a set of assumptions about the building based on conventions and requirements at the time the building was constructed. This means that less information is required from the homeowner for the assessment than for a new build property. This adapted method is called Reduced data Standard Assessment Procedure (RdSAP). 

Generally, for buildings being marketed for sale or rent RdSAP is the appropriate method of assessment. For certain types of building, however, the SAP method will give a more accurate rating. The types of property where the SAP method might give a more accurate rating include buildings constructed to current Building Regulations standards, or those that have been refurbished with advanced energy efficiency measures installed. Using the SAP method for an existing building will require more detailed and extensive information. When the SAP method is used for older buildings, the energy assessor will need to ensure that any recommendations proposed are appropriate for installation in the building.

An Energy Performance Certificate assessment takes on average anywhere from twenty minutes, for a studio apartment, to an hour for larger family homes. The main determining factor is the size of the property, but the layout of the property is also a factor. Commercial, or Non-Domestic surveys can take considerably longer with some large commercial buildings taking a full day or even longer. 

Note: It has been estimated that an average three-bedroom semi-detached house would take just under two hours to complete.

An EPC must contain the following information:

• It must contain relevant information about the property’s present energy use as well as its carbon dioxide discharges. This information must be stated using a rating of A (very efficient) to G (least efficient).
• It must also contain the details of the energy assessor who issued the Energy Performance Certificate for future reference. It should also contain the date the assessment was conducted as well as the date the certificate was issued.
• An overview of the relevant energy structures found on the property.
• It should also have a certificate number which should be easily located at the top of the certificate.
• An EPC Certificate should also have a validity date that tells the exact date the certificate will expire.
• It should also contain suggestions about improvements that ought to be made to increase the energy efficiency of the property.

Minimum Energy Efficiency Standards (MEES) came into force on the 1st of April 2018. Properties rented out in the private rented sector need to have an EPC rating of at least “E” to be let out, properties rated as “F” and “G” cannot lawfully be let out. The regulation is enforced upon the granting of a new lease, the renewal of an existing lease and from the 1st of April 2020, MEES extended to cover all leases which were already in place, irrespective of the fact if renewal of lease was due.  In special circumstances, landlords will be given an extension of six months from the date of the grant of the lease to comply with the regulations.

When selling a house there is no minimum requirement in terms of EPC grading, however it is requirement to have a valid EPC when selling the property. It is likely this will change in the future. 

If your property is newly built, you will need to attain an EPC by carrying out SAP calculations. These calculations make sure your building complies with Part L of The Building .Regulations

All non-domestic property types are also within the scope of these regulations, except for those that do not require an EPC under current regulations, which include:

• Places of worship.
• Temporary buildings that will be used for less than 2 years.
• Stand-alone buildings with total useful floor space of less than 50 square metres.
• Industrial sites, workshops and non-residential agricultural buildings that do not use a lot of energy.
• Some buildings that are due to be demolished.
• Holiday accommodation that’s rented out for less than 4 months a year or is let under a licence to occupy.
• Listed buildings - you should get advice from your local authority conservation officer if the work would alter the building’s character.
• Residential buildings intended to be used less than 4 months a year.

After a consultation in December 2020, the government have announced changes to the Minimum Energy Efficiency Standards for England and Wales. The government have proposed that all rental properties will need an EPC rating of ‘C’ or above by 2025. Similar to the previous changes, the new regulations will be introduced for new tenancies first, followed by all tenancies from 2028.

The regulation changes hope to make homes more energy-efficient and reduce carbon emissions as part of the government target to be net-zero by 2050.The penalty for not having a valid EPC will also be raised from £5,000 to £30,000 from 2025.

The EPC certificate will grade the energy efficiency levels of the property with a rating from A-G; A being the most efficient, G being the least. Naturally, the higher the rating, the more energy efficient the building is. Currently, the average rating for a home in the UK is D - E.

More specifically, if your rating is below E, it's illegal to rent or sell your property. Not only that, but also a low rating affects your home's value and saleability. An EPC cost is worth paying for in order to improve your home's energy efficiency as it is insubstantial compared to the finical benefit it brings. 

In a similar scale to the labels when buying new electrical devices, the energy efficiency of properties is graded on a sliding bar graph with a colour scale from green to red to indicate their energy requirements or consumption. The certificate shows both current and potential ratings for both the Energy Efficiency Rating and the Environmental Impact (CO2) Rating. 

The potential for negative impact on the property is legitimate reason for MEES exemption. In this scenario, an independent qualified surveyor must judge that the necessary energy-efficiency improvements would reduce the property’s market value by more than 5%. 

These types of exemptions are based not on the details of the property itself, but on the relationships between tenants and landlords. If a tenant, superior landlord or planning body either refuse consent for the improvements MEES requires, or require conditions that the landlord cannot comply with, the landlord can claim exemption. However, it is essential that you use all reasonable means to come to an agreement and gain consent before applying for this form of exemption.

After the assessment, the assessor will send you the Energy Performance Certificate and the recommendation report. The recommendation report will give recommendations on how energy efficiency can be improved on the property. Once the Energy Certificate has been issued, it will then be added to the EPC Register Online. The Energy Certificate is essentially a report of energy management, reporting how energy efficient a residential or commercial premises is.

If you choose to use an estate agent to market the property, they must include a copy of the EPC report in all commercial advertisements such as the brochure and websites, etc. If you choose to market privately, the EPC is still a legal requirement for both sales and lettings. With a new building, the builder in charge of the construction is responsible for the establishment of an original Energy Performance Certificate. The Energy Certificate can only be produced by an accredited on-construction domestic energy assessor.

After the energy assessor is done with the assessment of your property, he will issue a valid EPC. The Energy Performance Certificate will give a detailed breakdown of the energy efficiency of the building using a grading system of A to G.

If your building is given a poor rating, it means that such building is not energy efficient. In most circumstances, properties given poor ratings will be required to make improvements on the premises to improve the energy efficiency of the building. These improvements are often recommended in the energy performance certificate.

Some of these improvements include; double glazing, installation of solar panels, insulation of walls, installing loft insulations and the installation of new boilers.

Extra requirements were introduced, whereby a section 21 notice (two months no fault notice) could not be served unless an Energy Performance Certificate (EPC), gas safety check certificate and the government’s How to Rent Guide had been served on the tenant.

Research published by Nationwide found the house price premium on a property with an energy performance certificate rating of A or B is just 1.7 percent, compared to a D-rated home. Whilst properties with an F or G rating attract a discount of 3.5 per cent.

An Energy Performance Certificate lasts for 10 years. The EPC does not transfer to the previous owner so your property may have a valid certificate. This means a certificate can be used as part of the sale of a house multiple times. However, if the certificate has expired, a property cannot be marketed for sale unless the seller has ordered a new EPC.