EPCs are needed for offices, restaurants, hotels, retail and industrial units, whether sold or rented.

If you have a building that uses or will use heating or air conditioning then you will probably require an EPC when it is sold or let.

The EPC required for any space you offer for sale or let must reflect the energy performance of the accommodation on offer.

Selling or letting part of a building, where the building has a common heating system

If a building has a  common heating system then the seller or prospective  landlord can prepare an EPC for the whole building. This EPC may then be made available for any part of the building subsequently offered for sale or let. It is also possible to prepare an EPC for a part designed or altered to be used separately.

Buildings with separate parts and separate heating systems

An EPC should be prepared for each part of a building that is being offered separately for sale or let. The EPC should reflect the services in those part(s) being offered for sale or let. A separate EPC should be provided for any common areas that exist solely or mainly for access to the part.

Selling or letting a building as a whole

There can be an EPC for the whole building, even if that building has parts designed or altered to be used separately with separate heating systems. If the building has a common heating system, the EPC may subsequently be used for any part of the building offered for sale or let.

Exemptions

Generally there should be an EPC unless one of the following exemptions are applicable.

Places of worship such as churches.

Temporary buildings with a planned time of use of less than two years, for example portable buildings.

Stand-alone buildings (physically detached from other properties) with a total gross internal area of less than 50m2 will be exempt.

A commercial building, which is due to be demolished, will be exempt. The seller or landlord will be able to demonstrate that:

  • the building is to be sold or let with vacant possession
  • the building is suitable for demolition and the resulting site is suitable for redevelopment
  • they believe, on reasonable grounds, that a prospective buyer or tenant intends to demolish the building (for example there will be evidence of an application for planning permission).

Industrial sites, workshops and non-residential agricultural buildings with "low energy demand" will be exempt. The CLG Guidance states "Activities that would be covered include foundries, forging and other hot processes, chemical process, food and drinks packaging, heavy engineering and storage and warehouses where, in each case, the air in the space is not fully heated or cooled."

Unfortunately the exact meaning of industrial activity is not defined in the CLG Guidance.  As a result, this definition is too loose to provide adequate guidance on whether a specific building, with no heating system fitted, is to be treated as a low energy building. It has been reported that almost any building without heating is being classed by some landlords as "low energy" to avoid the need for an EPC to be prepared.  However, if the building includes accommodation for personnel, e.g. toilets, staff room, offices and tea making facilities, it should be expected to have heating and so require an EPC.

The defining of 'low energy demand' therefore remains problematic. Until definitive official guidance is available, you may wish to refer to the Town and Country Planning Use Classes Order, which classify buildings for planning purposes. Most low energy buildings will fall into Use Classes B3 to B7. There may be a few low energy buildings within Use Class B2 or B8, but not all and any other Use Class will require an EPC unless they are otherwise exempt, e.g. by size, planned demolition, etc. Clients or their agents should be able to confirm the Use Class of buildings they want to sell or lease and in many cases this information will be on the marketing documents.

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