Latest confusion about Energy Certificates - Required for ALL properties on sale from October 1st?
There has been some comment in Estate Agency newsletters about the latest confusion about whether or not EPCs (Energy Performance Certificates) will be needed for ALL properties on-sale and to-let from October 1st.
The confusion stems from the fact that EPC requirements are mandated by Energy Performance Regulations and were only latterly included in HIP pack requirements. The situation was then further complicated by the confused implementation of HIPs and the various ‘Exemptions’ to allow for the delays.
These ‘Exemptions’ allowed properties to be marketed without needing an EPC if the property was already on the market and did not require a HIP because of continuous marketing since before the HIP introduction or where no HIP was required because of the phased introduction of HIPs. (Different dates depending on the number of bedrooms.)
It was commonly believed that the current transitional arrangements for HIPs meant that an EPC would continue not to be required for non-HIP properties. Unfortunately an amendment to Energy regulations, snappily entitled: “The Energy Performance of Buildings (Certificates and Inspections) (England and Wales) (Amendment) Regulations 2008″ has thrown everything into confusion again. This new amendment brought in only months ago (6 April 2008), ends HIP-based EPC exemptions on October 1st. The regulation is part of the Energy Performance in Buildings Regulations and has nothing to do with HIP regulations. The upshot (at the time of writing) is that ALL properties on the market from October 1st will need an EPC or will have to be withdrawn from sale.
The full amendment can be found at:
http://www.opsi.gov.uk/si/si2008/uksi_20080647_en_1
Private Sales and Renting
This amendment also applies to properties currently not requiring a HIP because of the ‘Private Sale’ exemption. This now means that private sales (even those within a family) will also need an EPC before exchange. All Private Sellers falling into this category need to be aware of the new requirements and to follow the unfolding of the story.
The amendment does not affect the proposed date of EPC requirement for Rental properties (defined as self-contained and not having shared facilities). October 1st is still the deadline for all new tenancies to have an EPC.
Government ‘confusion’
The choice of October 1st for implementation of the amendment is itself puzzle. The UK regulations are being implemented on the back of EU Energy regulations but these do not require all properties being sold to have an EPC until January 2009.
Government departments were reported to be unaware of these confusions when asked for clarification, but a CLG spokesperson is quoted as saying: “We are now considering what to do in relation to the ending of this exemption.” The spokesperson is reported as saying that the view of CLG was that not many properties would be affected by the end of the exemptions. He is reported to have seemed “astonished” when told that thousands of non-HIP properties remained unsold because of the state of the market and would be affected.
Expect either another amendment to the Energy amendment delaying it until January 2009 or an extension of the “no HIP, No EPC required” exemption when MP’s (finally) get back from their holidays and discover the mess they’ve left behind.