Building regulations - EPCs enter statute

The introduction of the Energy Performance of Buildings Regulations (2007) on 1 October has seen energy performance certificates become mandatory for the sale or letting of all residential and commercial properties in the UK. Certificates produced by an accredited assessor provide an A to G rating for the building (A being the most energy efficient), as well as a report that suggests improvements to make the building more energy efficient.

Display EPCs have also been made mandatory for buildings with a total "useful floor area over 1,000m2" that are occupied by a public authority or institution that provides a public service to large numbers of people. These documents must show the energy use of a building and its operational rating, as well as help the public to see its energy efficiency.

Andrew Perry, operations manager at property broker Reich, said: "Property owner clients will be the most affected by this legislation; if their buildings have a poor energy performance, this could lead to lower rents or even being unable to let the building at all. Conversely, a building with good energy performance will be desirable and should attract a higher rental income."

Perry continued: "Although in most cases the lack of an EPC will not affect a claim under a general insurance policy, the broker needs to be aware of the requirements in order to provide best advice. Many insurers have accredited energy assessors and can therefore produce the EPC if required."

Alex Matthais, energy management leader at RSA, warned: "This will have a massive effect on brokers' customers' trading capabilities. You cannot sell, lease or construct a building without an energy performance certificate."

Matthais highlighted that, by acting on the recommendations made in the report that accompanies an energy performance certificate, businesses could save money in the long term. RSA's office in Manchester is following its certificate's recommendations, purchasing a duct for its heating and ventilation system at a cost of £15,000, though it is estimated that this investment will lead to an annual saving of £6,000.

Steve Ford, special services manager at Allianz Engineering, highlighted the pitfalls of non-compliance: "The regulations include levels of fines for non-compliance (that go) up to £5,000 for not having an EPC, or £300 for not showing a display energy certificate."