All domestic and commercial buildings in the UK available to buy or rent must have an Energy Performance Certificate (EPC), your pub is one such building.
What are EPCs?
Much like the multi-coloured sticker on new appliances, EPCs tell you how energy efficient a building is and give it a rating from A (very efficient) to G (inefficient). EPCs let the person who will use the building know how costly it will be to heat and light, and what its carbon dioxide emissions are likely to be.
The EPC will also state what the energy-efficiency rating could be if improvements are made, and highlights cost-effective ways to achieve a better rating. Even if you rent your home, some improvements noted on the EPC may be worth implementing, such as switching to more energy-efficient light bulbs.
EPCs are valid for 10 years from when issued, and if your pub has a certificate which is 10 years old (or will be 10 years old at the time of a letting/sale) you will need to arrange a new certificate.
Why get an EPC?
Your property’s EPC needs to be available to potential buyers as soon as you start to market your property for sale or rent.You must get an approved Domestic Energy Assessor to produce the EPC.
If you implement any of the energy efficiency recommendations outlined in your EPC, you may wish to get a fresh EPC done to include these improvements.
Who produces energy reports and EPCs?
In England, Wales and Northern Ireland, only accredited Domestic Energy Assessors can produce valid EPCs.
- For a list of approved EPC organisations in England and Wales, visit Landmark to view the energy performance certificate register.
- For a list of approved EPC organisations in Northern Ireland visit Landmark for Northern Ireland.
Further information on EPCs
For more information on EPCs in England and Wales, visit the EPC pages at Directgov.
For more information on EPCs in Northern Ireland, visit NI direct and see the Department of Finance office’s information on EPCs.
If you are in Scotland, only organisations approved by the Scottish Government can produce valid EPCs. Visit the Scottish Government website to find a list of approved EPC organisations.
If you are selling your pub through a selling agent, you should ask them to arrange for a an Energy Report and EPC to be made.
Energy Reports can only be produced by chartered surveyors registered with RICs. Find a surveyor.
Changes to Lettings of Pubs
As of April 1st 2018,, a landlord company (such as a brewer or pubco) will not be able to let a pub property that has an energy performance certificate (EPC) rating of an ‘F’ or ‘G’ – with new lets requiring an ‘E’ rating or better.
Responsibility for landlords
The new legislation is intended to make commercial properties more energy efficient, and to drive landlords and the owners of properties to carry out work to make them more efficient rather than the onus being on the tenant.
There are limited options for landlords to seek exemption from this regulation if the property is “listed” or making the property more energy efficient would make be economically unviable.
The fines for a landlord, if they do let a property that is ‘F’ or ‘G’ rated, are quite substantial and are related to the rateable value of the building – with a maximum fine of £160,000. However, this does not prevent a landlord marketing a property with a ‘F’ or ‘G’ rating, the offence of letting such a property would not occur until the transaction completed.
If you are considering buying or renting a pub after April 1st 2018 you should contact the vendor or landlord to ensure they are compliant with this new rule.