Holly Minney
Commercial Property
Where a Commercial Building Does Not Have a Heating System, Does It Now Require an Energy Performance Certificate When the Tenancy is Renewed?
The key regulations governing EPCs are the EPC Regs 2012, SI 2012/3118, and the Building Regs 2010, SI/2010/2214, which implemented the requirements of the recast EPBD Directive 2010/31/EU. The EPC Regs 2012 apply to all buildings across England and Wales.
By way of reminder, an EPC is generally required:
- when an existing building is sold or rented out;
- when a building under construction is finished;
- after refurbishment when there are greater or fewer separate parts of the building and the modification includes the provision or extension of fixed heating, air conditioning or mechanical ventilation systems.
The seller or the prospective landlord must make an EPC available to ‘a prospective buyer or tenant’ free of charge at the earliest opportunity. This can be provided electronically, where the prospective buyer or tenant consents to this.
A person becomes a prospective buyer or tenant in relation to a building when they:
- request any information about the building for the purpose of deciding whether to buy or rent the building;
- make a request to view the building for the purpose of deciding whether to buy or rent the building;
- make an offer, whether oral or written, to buy or rent the building.
In answer to the above question, a commercial building without a heating system does not require an Energy Performance Certificate (EPC) when the tenancy is renewed. According to the Energy Performance of Buildings (England and Wales) Regulations 2012, SI 2012/3118 an EPC is required for buildings that use energy to condition the indoor climate, which includes heating, mechanical ventilation, and air-conditioning systems. Since the building in question lacks a heating system, it does not meet the criteria for requiring an EPC.
Joanne Wood, Member, and Head of Property at Mullis & Peake, said:
“That as with most rules there are exceptions. It is always worth checking the regulations if in doubt. The regulations are accessible to all and are relatively easy to read but as ever, if in doubt, please speak with a member of our expert team or a surveyor.”