EPCs – Changes for Scotland have arrived

The majority of the new Regulations applicable to buildings in Scotland come into force on 1 October 2012, with further changes applicable from 9 January 2013. The key features of the original 2008 Regulations remain unchanged: EPCs will continue to be required on the sale, lease or construction for the same classes of properties and be valid for a period of up to ten years.

There are three key changes to be aware of:

• After 1 October 2012 a recommendations report must be provided along with the EPC;
• After 9 January 2013 an energy performance indicator must be included in all advertisements; and
• Owners and occupiers of premises frequently visited by the public must ensure that an EPC is prominently displayed.

Much of the content of the 2012 Regulations provides clarification of existing arrangements.

From 1 October 2012 property owners should be aware of these amendments to the EPC regime:

• The 2012 Regulations clarify that the regulations apply not only the sale or lease of a whole building but also to units within a building.  In fact, this reflects current practice where an EPC has generally been issued when the sale or lease has been for part of a building.
• EPCs must include an energy performance indicator, showing the energy efficiency or performance rating of a building  or building unit calculated using the methodology provided in the original Regulations and expressed on a scale of A to G (A being excellent and G being very poor). This is the same scale as has been used in EPCs to date and has been continued as it is seen to be easy to interpret. However, the certificate must now also contain cost effective and technically feasible recommendations for improving the energy performance of the building.
• Both prospective and actual tenants and purchasers must also now be provided with a separate recommendations report, which includes more detailed information on the cost effectiveness of the recommendations, and the steps to be taken to implement those recommendations.
• Clarification is also provided as to whom an EPC must be issued.  When a building or building unit is to be sold or let the owner must make available for inspection a free copy of a valid EPC to any prospective buyer or tenant.  The 2008 Regulations provide that to avoid the risk of a penalty notice, this must be done within nine days of request. The owner must also provide copies of the valid EPC and the related recommendations report free of charge to the eventual tenant or purchaser.  .

What will change on 9th January 2013 for residential landlords?

• From 9th January 2013, owners offering a property for sale or to let must include EPC information in any advert for selling or letting the property;
• The 2012 Regulations also bring into force additional provisions for penalty charge notices to be issued when an owner neglects to include the energy performance indicator for the building in any advertisement for sale or let; and where the owner or occupier fails to display the EPC in their building, where there is a requirement to do so.   In both cases the penalty is a £1,000 fine for non-residential properties.

The Energy Performance of Buildings (Scotland) Amendment Regulations 2012 can be read here:
http://www.legislation.gov.uk/ssi/2012/190/contents/made

The Energy Performance of Buildings (Scotland) Amendment (No.2) Regulations 2012 can be read here:
http://www.legislation.gov.uk/ssi/2012/208/contents/made