Monday, 11 Aug 2008
new energy performance certificates for all properties being sold or leased in scotland
What is happening?
Anyone intending to sell or rent properties in Scotland will soon be required by law to have an Energy Performance Certificate. For houses, the new rules come into force on 1 December this year at the same time as the Scottish government’s introduction of mandatory sellers’ Single Surveys and Purchasers’ Information Packs. For all other premises, the rules take effect on 4 January 2009.
The purpose of the certificate is twofold. First, the certificate will contain practical advice to property owners and occupiers on cost effective measures they can take to improve a property’s energy efficiency. Second, and perhaps more significantly, it will state an energy rating for the property. The ratings will follow broadly the same system to domestic appliances such as fridges and freezers, ranging from A (best) to G (poorest).
An Energy Performance Certificate must be produced to a prospective buyer or tenant at the earliest opportunity. Generally, this will mean before a visit by an interested person to the property or before publication of any marketing literature. Certainly, no contract for the sale or lease should be concluded before the certificate has been produced.
The certificate remains effective for ten years.
Why is this happening?
It forms part of the European Union's drive to improve energy efficiency and to reduce carbon emissions under the Kyoto Protocol. Specifically, the Energy Performance of Buildings Directive 2006 (EPBD) brought in enhanced energy conservation requirements for new and refurbished buildings from April 2006. It will now require energy performance certification for all buildings when sold or leased. In addition, it will introduce regular inspections for larger air conditioning systems and advice on more efficient boiler operation for commercial properties.
What happens, in practice, if we want to sell or rent out property?
First, the property owner will need to instruct an assessor to prepare an Energy Performance Certificate. Many surveyors will be able to carry out the assessments required to produce Energy Performance Certificates. The cost of certificates will vary depending on the size and complexity of building. Local authorities are tasked with ensuring compliance and will have the power to impose penalty fines if Certificates have not been obtained.
Second, the Certificate needs to be made available to any prospective buyer or tenant. For houses, this means the certificate will form part of the mandatory sellers’ marketing literature. There is a further requirement on public buildings of over 1,000 square metres to display the certificate.
Do we need to do anything right now?
If you are thinking of selling or leasing in the near future, you might want to do so now and avoid the above costs. If not, then it makes sense to "get your house in order" by fixing obvious energy inefficient points in your property and ensure a better standard of energy efficiency. We work closely with surveyors advising on energy performance certificates and can put you in touch with specialist advisers, should you require this.
If you would like any further information on this topic, please contact Michael Dewar.