Energy Performance Certificates

A European Union Directive which promotes the improvement of the energy performance of new and existing buildings is about to become a feature of both the domestic and the commercial property market. Implementation is achieved through the use of an energy performance certificate (EPC). An EPC will show the energy efficiency of a building.

Since 1st May 2007 an EPC requires be produced for all new buildings whether residential or commercial. As from 1st December 2008 an EPC will require to be produced as part of the sale of a domestic dwellinghouse. As from 4th January 2009 an EPC will be required on the sale or rent of all other buildings. The requirement for an EPC does not appear to be triggered by an assignation of an existing lease or a lease extension or renunciation.

EPC’s are valid for ten years and give buildings an A to G rating (A being the least polluting and G the most). EPC’s contain information stipulated by regulations and require to be accompanied by an advisory report which provides a list of cost effective measures for improving the energy efficiency of the building.

There are various exceptions for buildings which do not require an EPC. Examples are temporary buildings which have an intended life of less than two years or certain types of buildings which do not use fuel or power for controlling the temperature within them. Stand alone buildings with a total useful area of less than 50 square metres are also exempt.

The assessment requires to be carried out by a certified body and the Scottish Building Standards Agency is working with a number of organisations to deliver the services in relation to EPC’s.

It is likely that EPC’s may influence the capital and rental values of properties as well as their marketability.

For more information please email Corra Irwin or telephone 01463 239393.

Disclaimer: The information in this publication is based on our current understanding of the law. It has been produced for information purposes only. Professional advice should always be sought before taking any action.

Macleod & MacCallum cannot take any responsibility for loss incurred through acting or failing to act on the basis of anything contained in this publication.