Home owners and landlords of properties are aware of the need to obtain the Energy Performance Certificate (EPC) for their property, and the obligation to present the certificate upon certain leasing or sales transactions. There are very few exemptions to the EPC requirement, which are explained further…
What’s the different types of EPC Exemption?
The six exemption types that are registered include:
All necessary improvements made exemption
The exemption is valid when the property is lower than EPC “E” after improvements are made to the cost limit (£3,500 with VAT included) or there is none that could be done.
High cost exempt
The exemption is valid in the event that no improvement is done because the cost for even the simplest suggested measure will be more than £3500 (including VAT)
Wall insulation exempt
The UK has some of the least energy efficient homes in Europe.
The exemption may be granted if the sole pertinent improvements to your property include:
- Cavity wall insulation
- Wall insulation on the exterior of the wall or
- Insulation for walls inside (for exterior walls)
Third-party consent exclusion
This exemption is valid in the event that the improvements needed for the property require consent from the superior landlord, another party or mortgagee, or freeholder, or the department of planning even if the all efforts, consent is unable to be obtained or is granted subject to conditions that a homeowner is not able to be able to.
Devaluation of property exemption
This exemption is valid in the event of evidence proving that the making of energy improvement improvements in the efficiency of the home could reduce its value by more than 5%.
There are other exemptions, which may be applicable:
Small buildings – under 50sq metres
Stand-alone buildings that have an area of floor space that is less than 50 sqm don’t require an EPC. Stand-alone buildings are defined as a structure which is completely freestanding i.e. completely separated from. Retail tenement buildings that have less than 50 square metres do not fall within the law.
A typical structure that is eligible for this rule could be kiosks at petrol stations in the event that it has a Gross Internal Area of not more than 50 square meters.
Temporary exemption for owners who have recently become a landlord
If a property owner recently become a landlord, under specific circumstances, they won’t be required to immediately take actions to make their property more attractive up to EPC “E”. They could be eligible for a 6 month exemption starting as of the date when they first became landlord of a property.
Commercial EPC Exemptions
You don’t require to have an Energy Performance Certificate ( EPC ) when you can show that the building is one of the following:
- recognised or protected by law and the required minimum energy performance requirements could not change it.
- A temporary structure only to be utilised for 2 years or less
- It is used for worship or other religious events
- A workshop, industrial site or agricultural structure that does not require much energy
- A detached building with an area of less than 50 square meters that are scheduled for demolition by the seller or the landlord and they hold all the necessary conservation and planning permits
Summary
There are a few buildings that don‘t trigger an obligation to have the use of an EPC or EPCs are utilized by both landlords and owners of buildings to fulfill a myriad of non-reglatory functions. It is always highly recommended to contact an accredited EPC assessor to make sure your building is compliant.