Update on New regulations

I though it might be useful to answer some frequently asked questions about EPC regulations:

EPC validity:

Despite rumours to the contrary, the validity of an epc for sale or rent remains at 10 years. Many in the industry mistakenly thought that a sale EPC was valid for 3 years, based on the validity of the Home Information Pack. There was an amendment put forward to the Energy Bill, which is currently passing (very slowly) through Parliament to reduce this to 1 year, but the amendment has been withdrawn. It is quite possible that the EPC lifespan will be reduced in the near future, however this is unlikely to be impemented before the Energy bill provisions come into force (late 2012 at earliest estimate).

Holiday Lettings EPCs:

There was widespread alarm at the prospect of EPCs being required for all holiday lets within a short timescale and the capacity of the energy assessment industry to deal with these. The guidance has now been amended so that if the property is being occupied (let) for more than 4 months in any 12 month period, an EPC is required. This will apply to many but by no means all lets. The requirement does not include mobile homes.

Commercial EPC on new lease:

The guidance is a little vague here - an extension or renewal for a commercial property does not require an EPC, however a new agreement/new lease does. It is difficult to be sure where the boundary lies, however if there is a change in lease terms it would be wise to check. Commercial EPC prices have fallen significantly and the EPC is valid for 10 years, so it is probably better to be safe than sorry.

Changes to EPB Regulations from April 2012:

These are the delayed changes that were intended to be implemented in July and then October 2011. Despite the delays, CLG apparently still hasnt had enough time to provide a clear and precise document, although they have stated that interim guidance will follow.

It does seem highly likely that for residential properties the full EPC will need to be attached to written particulars, not just the asset rating (EPC graph) and that there will be a requirement to demonstrate that an EPC has been commissioned before marketing commences, rather than wait until the property is under offer. The implications of the first point are significant in terms of brochure production and also where EPC's are uploaded to internal/external websites. It would be prudent for agents to establish that their sofware and the websites they advertise on a re geared up for the change.