Helping Innovate Property (HIP) – Blog, Housing Market News and Articles

The commercial EPC legislation came into force on April 2008 and now the large majority of commercial properties require a Commercial Energy Performance Certificate before marketing of the property can legally commence.

Whereas the domestic equivalent do vary slightly they are generally under a £100; whereas the commercial EPC is generally £350 and upwards and very much dependant on the individual property. The similarity between commercial and domestic energy performance certificates names can give people an impression they will be similarly priced. The difference in cost is due to the much increased time and expertise required to produce the commercial EPC both on-site and off-site.

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The Fuel Poverty bill has been thrown out of parliament as not enough MPs turned up to vote on the bill. With rising energy prices and the challenging financial situation at present surely this was a good move to help those less vulnerable than themselves, who can not claim £60k for a second home.

The Fuel poverty Bill was put forward by David Heath, the Liberal Democrat MP. It is estimated that there are currently 5.5 million households living in fuel poverty; this figure is calculated by the number of people where one tenth or more of their income goes on gas and electricity bills.

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The continuing credit crunch is affecting homeowners in great numbers, and with no sign of improvement imminent it could be worth looking at just how efficient your home is.

We all think we have done enough to improve our homes, but how many of us have? And when it comes to the crunch, just how much can be saved and how?

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Continuing Professional Development continues to be a ‘hot topic’ within the domestic energy assessor industry; with accreditation schemes auditing their members and DEAs looking to provide evidence of the required CPD hours.

We were very happy to announce we had been asked to help design a website for Continuing Professional Development for those in the industry in a previous article ‘What is Continuing Professional Development (CPD) for Domestic Energy Assessors?’; and even more pleased to be able to say it is now live !!

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With Commercial Energy Performance Certificate (CEPC) legislation now rolled out across the country there has proven to be some confusion in areas of the regulations, particularly with regard to what properties are exempt from needing a CEPC. The biggest area of contention seems to be based on the size of a property.

There is an urban myth that is gaining popularity within the market that non domestic properties of 50 square meters and below are exempt from needing a Commercial Energy Performance Certificate as required by law.

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The domestic energy assessor industry is deveolping from its fledgling existence with ambitious plans to utilise the skill base we have within the UK. The energy assessment industry has met numerous challenges since its inception, certainly during the past year.

Maybe due to the New Year approaching, maybe due to the frustration from the lack of progress made by the Government in certain areas, there has been a noticeable amount of reflection on goals achieved within our industry and future aspirations that would benefit our industry but more so the country and arguably the entire planet.

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Continuing Professional Development (CPD) is a method of improving your skills and knowledge base by constant development. This is achieved by the individual Domestic Energy Assessor (DEA) setting themselves a target for certain areas of improvement and learning across a given time.

There is not a set route or programme with regard to CPD as different people will begin the process at different levels of experience and knowledge; however, the process follows certain guidelines that allow each to achieve what is planned.

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You will have heard about Energy Performance Certificates (EPCs) and the full roll out that finished on the 1st October. Anyone involved in domestic or non domestic property will come across them in some capacity. However, in amongst all the legislation in the regulations there is another requirement that may take some by surprise.

From 1st October 2008 all public sector buildings, which are non dwellings, with public access and above 1,000 square meters will need to have a valid Display Energy Certificate, or DEC. Council offices would need one, leisure centres would need one, hospitals would need one, a large school may need one, but only if it is publically owed and has public access. No private building is required to have a valid DEC, although there is nothing to stop someone having one on a voluntary basis.

There are two elements to a DEC. The first is the Certificate. This is an annually renewable document which is based on the analysis of the building utility bills. The other is an Advisory Report which is based on an inspection and is valid for up to seven years. It is a legal requirement to display the Certificate at all times, such as in a public reception area, and to have an accompanying valid Advisory Report available to be produced if requested by anyone who asks for it. Failure to have both elements of a valid DEC in your possession can result in fines.

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Home Inspector (HI) and Domestic Energy Assessor (DEA) training has had claims attached to it of large potential earnings for those qualifying and practicing in this field.

In response to a high levels of comments left on the article (at time of writing nearly a 100 comments) ‘Should I train as a Domestic Energy Assessor (DEA) ?’ we felt it would be beneficial to specifically explore the Home Inspector (HI) qualification and its potential further.

The Home Inspector qualification was designed to fulfill the Home Condition Report (HCR) requirement within the Home Information Pack. Initially, it was planned that the HCR would be a mandatory component within the HIP though was in fact made an optional document. Professionals within the industry and none more so than those that qualified as a Home Inspector near its’ inception will tell you that there has been very little to no demand for the HCR due to it being made voluntary.

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Hidden away amidst the depths of the legislation that came into force in October from the Department of Communities and Local Government (DCLG) has been a clause about Commercial Energy Performance Certificates (CEPC).

The DCLG Guidelines clause is out lined below:-

“Clarifying arrangements for the October roll-out for commercial buildings already on the market which will be similar to those put in place in April and July. This means that any non-domestic building on the market before 1st October and remaining on the market will need an EPC by 1st January at the latest. If it is sold or rented out in the meantime, an EPC must be commissioned and then handed over as soon as is practicable. This measure is intended to make it easier for owners and landlords to comply with the legislation, avoid market fluctuations and is in response to expectations from the industry.”

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The Home Information Pack legislation is generally understood; that ‘all’ domestic properties being placed on the market require a HIP, except in a few exceptions. The important date of the 1st October 2008 looms in regard to the Energy Performance Cerification of properties; did you realise that if your house was on the market before the relevant Home Information Pack legislation was enacted that you will require an Energy Performance Certificate (EPC)?

You may have had you home on the market by now a ‘considerable’ length of time and whilst these properties continue to be exempt from the HIP legislation are not exempt from Energy Performance Building Directive (E.P.B.D.)

So what does this mean for pre-HIPs home sellers from the 1st October 2008?

One must have an Energy Performance Certificate (EPC) commisioned and it must be made available to prospective buyers in its full form at the earliest opportunity when:

• when the building is viewed
• If any written information about the building is provided as a result of a request by a prospective buyer – this includes email and electronic communication
• When contracts are exchanged

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