Whether you are buying, selling or renting a house, an energy performance certificate (EPC) is a requirement in most property transactions.

What is an EPC?

An Energy Performance Certificate (EPC) indicates how energy-efficient your property is. It contains information about energy usage, along with recommendations to reduce energy usage and save money. The energy efficiency rating runs from A (most efficient) to G (least efficient). An EPC is valid for 10 years.

When is an EPC required?

An EPC must be commissioned whenever a property is built, sold or rented. The Government believes that choices to buy or rent a property are influenced by its energy performance rating. In fact, it is illegal to let a property that has an rating below E.

For these reasons, sellers and landlords are required to:

• Commission an EPC before marketing a property (if there is no valid EPC already)

• Specify the energy performance rating in any advertisement of the property

• Provide prospective buyers or tenants with a valid EPC for the property

Are there any exceptions?

Some properties are exempt from the above requirements and include, amongst others:

• Properties which are used for less than four months in the year (such as holiday lets)

• Buildings that are earmarked for demolition

What if I fail to comply?

You could receive a penalty charge notice if you fail to comply with your obligations. The penalty may vary depending on whether the property is a dwelling or a commercial property.

The enforcement authority may instead take a light touch approach and give you some time to comply. However, it is always better to comply in the first place to avoid the risk of reputational damage.

  • Madeleine Wakeley is a partner in the commercial property team at award-winning law firm VWV, which has offices in Clarendon Road in Watford