Legislation

The EU has to ensure that all member states are addressing the problems associated with climate change and are working towards more efficient use of energy. On 4th January 2003, the EU Directive on the Energy Performance of Buildings (EPBD) came into force creating a common framework to promote the energy performance of buildings across the EU.

One of the requirements of this Directive is the introduction of energy performance certificates (EPCs) that must be made available whenever a building is constructed, rented or sold.

Member states were required to implement the Directive into their national law by 4th January 2006. However, the implementation of certain parts of the Directive can be delayed if there is a lack of suitably qualified independent experts.

In 2004, the Housing Act was introduced by Parliament that provided the legislation behind the Home Information Pack (HIP).

HIP

Commissioning of the HIP is mandatory prior to the marketing of domestic properties for sale and must include such documents as Terms of Sale, Standard Searches as well as an EPC. The implementation of HIPs was planned for introduction on 1st June 2007. However, on 22nd May 2007, Communities Secretary Ruth Kelly made a statement to the House of Commons delaying the introduction of HIPs until 1st August 2007.

This delay was in part due to a judicial review by the Royal Institute of Chartered Surveyors (RICS) and as a result of a lack of qualified and accredited Domestic Energy Assessors at that particular time.

HIPs including EPCs, will be implemented on a phased basis from 1st August. HIPs and EPCs will be required for the sale of four bedroom properties and larger from 1st August 2007 with smaller properties being phased in by 2008.

On the 15th August 2007 the Government announced that the second phase for the introduction of HIPs and EPCs will be rolled out to three bedroom properties with effect from 10th September 2007.

The EPC

The EPC is an objective report on the energy efficiency of a property. It provides clear information to any potential purchaser on the energy performance of the property and effective means for improvement. The certificate will contain an energy efficiency rating similar to those available for domestic electrical appliances that will display the current efficiency rating alongside the potential rating, should the recommended improvements be carried out. Similarly, the certificate will display an environmental (CO2) impact rating that measures the property’s impact on the environment in terms of Carbon Dioxide emissions.

In order to improve the property’s performance in energy terms, there will be details of simple recommended low-cost measures and long term measures to improve the property’s performance rating. There is no onus on the homeowner to carry out these recommendations.