Existing assessment tools

The Energy Performance of Buildings Directive (EPBD) was issued by the EU in response to the Kyoto Protocol, requiring countries to enhance energy efficiency in 'certain sectors of the national economy'. The Directive contains 17 articles that should have been implemented by January 2009 at the latest, which included an extension of three years.

The 2 main aspects of the Directive have been implemented in the UK through:

• the revised Part L of the Building Regulations discussed above; and
• the production of Energy Performance Certificates (EPCs) for buildings.

Energy Performance Certificates were introduced on a phased basis with the final section effective from 1 October 2008. All buildings being sold or let now need to have an EPC in place for when the building is being marketed (in practice, when the marketing details are sent to prospective purchasers/tenant, or when they are shown around the property).

EPCs must also be produced for all newly-constructed buildings and form part of the Building Regulation approval process; a Building Control Completion Certificate cannot be issued until the EPC is in place.

The Energy Performance Certificates are similar to the energy stickers placed on white goods that have a range of A+ to G, with A+ being the most energy efficient. They also must have a Recommendation Report, which gives proposals for improving the energy rating of the building. A building constructed to the new Part L Building Regulations will be on the cusp of grades B and C, with naturally-ventilated buildings probably making it to a B but air-conditioned being a C or D.

For detailed guidance on when an EPC is required, see the CLG document Improving the energy efficiency of our buildings - A guide to Energy Performance Certificates for the construction, sale and let of non-dwellings.

Following earlier consultation by the Government, amendments to the regulations relating to EPCs took effect on 6 April 2012. In practice, the main changes will mean that: 

• the first page of the Energy Performance Certificate (not just the asset rating) must be attached to written particulars / marketing material for any property;
• agency practices can be required to produce evidence that an EPC has been commissioned if they are marketing a property without one;
• an EPC is required when marketing commences and confirm that the EPC cannot be delayed until just before the transaction; and
• that the client must commission an EPC prior to marketing and both the client and their agent must use all reasonable endeavours to obtain the EPC within 7 days of marketing and an absolute obligation to obtain the EPC within a further 21 days.

In February 2012 the Government also confirmed that from April 2018, all commercial and residential buildings being let would require a minimum EPC rating of E or above; therefore, any buildings with an ‘F’ or ‘G’ rating would not be able to be let - this will clearly have a significant impact on landlords owning the less energy efficient buildings in the UK - a not inconsiderable number! This will provide a clear business driver for landlords to carefully consider sustainability and energy use in their plans for the buildings, offering refurbishment opportunities for chartered surveyors. It will also create challenges to valuation surveyors – what value a building that can’t be let?

Note: As UK EPCs legislation is as the result of an EU Directive, their future use and the requirements will no doubt be reviewed as part of the wider fall-out from the UK’s vote to leave the EU.