New rules on Energy Performance Certificates are set to be implemented on July 1 amidst disarray at government level over the changes.
Although the Government has not officially announced the changes, EPC providers have been told and the official memo has been seen by Letting Agent Today. However, the memo is headed 'draft' and whilst it refers to July 1 as the implementation date, it is understood that civil servants at the two departments concerned – CLG and Energy and Climate Change – are still arguing behind the scenes on one of the most important changes: the inclusion of a full EPC on all property details.
Whilst the EPC industry is convinced that this will be made mandatory from July 1, it is understood that civil servants are looking at an alternative proposal, to make it mandatory for a shortened, double-sided A-4,version to be included. This suggestion, which could kick in later, on October 1, could be put out to consultation.
The changes in the pipeline will, however, affect both letting and sales agents. From the official CLG memo we have seen, agents will be required to have ordered an EPC before any marketing can start.
On and after July 1, the EPC will have to be in place within seven days after marketing has commenced – not the current 28 days – although there is something of a let-out clause.
The memo says that ‘reasonable’ efforts must be made to secure the EPC within seven days, but if the EPC is still not in place, the ‘relevant person has a further 21 days to do so’.
The ‘relevant person’ could be the seller or landlord, as is the case at the moment, but for the first time the definition includes someone acting on their behalf – ie, the letting or sales agent, or possibly their solicitor.
Trading Standards Officers will have the power to request proof from agents that the EPC has been ordered and to view the actual EPC seven days after marketing has begun.
The memo says: “This means, for example, that TSOs will be authorised to require estate agents to produce evidence showing that an EPC has been commissioned where they are marketing a building without one.”
In addition, the full EPC will need to be attached to all written particulars. The option simply to include ratings is removed.
The new EPC requirements also affect non-residential buildings which are being sold or rented out.
The new rules will also be amended to remove what CLG says is the ‘erroneous belief that the provision of the EPC can be delayed until shortly before the parties enter into a contract for sale or rent. This will be achieved by deleting the words “before entering into a contract to sell or rent the building or, if sooner” in Regulation 5(2)(b) of the EPC Regulations’.
The memo ends by saying that the changes will affect all properties marketed after July 1, described as the day that the changes are 'due' to come in.
More on this story in EAT tomorrow.
Comments
Bizarre spin on the arguments so far:
When looking for a property to rent at the end of 2010, I always asked to see the EPC details and was presented, by and large, with the requested information without delay. With this, I was entirely satisfied, with the full report only requested where the 'current' and 'potential' differed greatly.
I moved in January, to a house with a decent 'average' rating. However, the landlord read every page of the report, has re-insulated the loft, ordered cavity wall insulation and is looking at installing photovoltaic cells on the roof, and all in the interests of improving his property's rating.
As you can imagine, I cannot speak highly enough of the report! On the flip side, I would have found the additional paperwork unnecessary and unweildy as I was receiving as many as 20 sets of details per week (though several duplicates, especially when advertised multi-agency). The graph was more than enough in most cases.
Well, no particulars then. Certainly not for lettings, not that we do that anyway. 1 person since the inception of this has actually asked to see one. NO ONE CARES!
Some people on here just seem to want to argue for the sake of it without actually listening (or reading in this case) exactly what others are saying. As one or two people pointed out, the real issue is actually having to include the Full EPC in every copy of sales particuars! Surely this is 'double standards' as an EPC is not only about prospective buyers / renters knowing the costs to run a property, but also as an incentive for sellers/landlords to reduce the properties carbon footprint! As this is clearly the 'real' reason behind EPC's then why are EA's likely to have to vastly increase their carbon footprint!! Total hypocrisy!
I've been in lettings about 20 years in total and I think EPCs are a good thing in themselves. But they are totally misleading. I rent two family flats out at the moment, one my son's 25 year old 1 bed south facing lounge and kitchen one and the other a modern 2 bed flat really nice.
My son's has wall mounted electric heaters but doean't need them because the place is always so warm. Even in the depths of this winter you almost needed the lounge or kitchen windows open it was that warm. It is top floor in a three levels block and has masses of insulation in the loft.
His flat scores two E's - why, because of the lack of gas CH.
His partner's has gas central heating, is on the middle floor in her block and has two B ratings only just below an A for each.
Total madness if warmth and not letting heat escape and how much energy you use to heat a property count for anything.
@SGHI
Why not address the actual subject?
The issue here is why is it deemed necessary to provide a FULL EPC on everything every time - newspapers, property particulars, the web etc.? Is it just not practical?
Great to see considered arguments on both sides of the fence!!!
Most non estate agents do not seem to realise that estate agents are legally bound to get the BEST price for their vendors. They have no legal responsibility to the purchasers other than not lying to them.
EPC's are fine, but it is a little wasteful to make them compulsory to be added in full to all printed details. I thought we were trying to save energy not waste it.
EPC's may well become connected to council tax, but not sure which politician is going to try it in the current economic climate. Just another tax on the low earners who can not afford solar panels or the latest condensing boiler.
AH! the same old arguments from the same old bunch of 'charmed' commission only sales people!
I guess anything that could prompt intelligent questions about a property's attributes EA's know diddly squat about must be viewed as an evil device...and derailed at any cost!
Wake up the lot of you miserable moaning hugely overpaid 'sales people', the EPC is as valuable to the prospective Buyer as a condition survey, only it focuses on bringing the built form and fixed building services into the spotlight...whether it is appreciated or not is a matter for the DCLG and their botched information programme...point 1.
Point 2...As sure as we pay differential rates for road tax based on emissions, so shall it be that Council Tax bands will in some way be linked to energy performance band.
WHY?
1. Energy Security.
2. Civil unrest in oil producing states.
3. Carbon emissions targets for 2020 and 2050 will not be met by any other means, providing information hasn't done it, incentive scheme may not do it...but taxation will!
4. More tax income to central Government.
The sooner you get behind it and market based on cost of ownership rather than decorative garbage the bether of Buyers will be. By not helping Buyers understand the implications of one over another, you conceal valuable information...just as if you were selling a poor performing second hand car by not offering facts and figures...just look at that leather upholstery nice eh!!
A few weeks ago some of you hurled abuse at DEA's as being ignorant under educated types. I was present during a viewing conducted by an EA and heard the questions being asked by the prospect all geared towards running costs, heating system, insulation levels etc. I could have wet myself laughing at the floundering grabage spouted in response. Talk about under educated!...laughable.
What fuel does the heating run on?..."Ummm, it's gas I think"...Is that bottled gas?..."No it comes in a pipe I think"...So what is the oil tank doing in the rear garden?..."Is there one?"
Lord help us all!
EA's are the most expensive dating service known to mankind, full speed ahead to virtual EA's at fixed fees and the demise of the high street shop front.
In my view most agents understand and accept that it is an EU Directive to have a graph on everything, be able to produce a full EPC when required and the reasons for this..
The issue is why is it deemed necessary to provide a FULL
EPC on everything every time? Possibly a sentence with the graph saying that it is available on request would suffice?
@Nick
@John Read
If you are directly involved at the selling coal face I am quite surprised at your threads, see my first sentence.
What a shower these ministers are.
They have no damned idea about this business.
I have only ever had one person ask to se a HIP when they were around and he chatted to us in the office and flicked through the document without reading it.
I have had one person ask to see an EPC who came from Scandinavia and I asked wh and he said because they have very cold weather .
The English do not give a rats about them and the sooner these jobsworth notice the better.
To print the full report is a waste of money and time.
I would like to extend an invitation to the person trying to implement this that he/she visits at least 50 agents offices and asks the question of how many have asked to see an EPC.
Will agents who have had more than one asking to see an EPC please say so here with numbers please and maybe Roz can pass information this back to them.
I would like to meet a purchaser (or tenant for that matter) who has ever actually declined to buy or rent a property purely from the results of the EPC!!! Only then will I believe that there is any benefit to the consumer in having one.
What a shower of moaners, Don't you want to do anything for your 1% plus? Gosh you go out to a property, spend an hour taking a few very poor photo's and measurements. Get a sign put up. Place a few adverts. Print off a few details and get paid thousands of pounds. On an hourly basis that's more than footballers. You want to think yourself lucky you don;'t work for the local council or the government and have to sweat for your money.
No idea why this is coming in. The amount of viewings we have completed over the last few years since EPC's came into force, you could count on one hand the amount of times people have asked to see them, and one of them I even offered to the viewer as they were only asking about the cost of the electric heating! If it does come in, though, dont forget the joys of email = no printing!
does anyone actually read an EPC, does anyone actually want one. NO. what a waste of tax payers money again, havent they got anything better to do with there time.
If this comes in then we will stop posting out sets of details, I'm just not paying the postage to send out details with extra sheets of paper attached.
In the office much the same, we will place a print of the EPC behind the copies of the details for people to take if they want.
What utter nonsense
I agree with EPCs and their benefits if taken seriously and I agree that they should be in place within 7 days of marketing the property, but what is all this wasting of paper? On average an EPC is 6 or 7 pages long so if a prospective tenant is interested in 4 or 5 of our properties we will have to dish out 30 plus pages of details! They are not going to be happy with lugging around this and similar from every agent they visit and neither will my printer, not to mention all these extra trees we will have to chop down!
We display all the ratings tables on all our marketing materials already and if a prospective tenant wants to see the full EPC (we have never yet been asked!) then we can then print one off.
What a good idea, agents details will be 12 pages long, buyers will end up throwing most of them away - must be good for the enviroment. Yet another ridiculous idea from those that no nothing about agency or how it works. I am a DEA and an Agent and can assure you since inception I have been asked only twice to explain the epc. No one cares, it is just another way of the government getting money by way of lodgement fees and vat.
As usual, any more paper work and everyone complains. It is about time that everybody, including estate agents, letting agents and the public were made aware of the advantages of an Energy Performance Certificate. Why is everyone so negative ? Surely, anything that benefits the consumer must be good. The cost is hardly onerous, is it just that nobody is conscientous nowadays ?
I for one would like to see potential purchasers and tenants made aware of any good or bad points regarding the property, so that reasons for buying / renting can be understood before a contract is in place.
Come on FFoPP / ARLA where are you? Get moving and do something POSITIVE for your members! Tell this lot just what the front line is all about.
what a complete waste of paper this is going be. I don't think they understand how many sets of details we as agents give out to the public
Why!! Why !! Why !! who on earth looks at these things? I have only once been asked for the full EPC even though we as a matter of course give these to tenants, vendors and solisitors as a matter of course and who has to pay for the addtional paper and postage, us the agent, why cant they just leave it alone I would say 95% of agents have the EPC on line and if it can be accessed on the net then that should be ok, if someone wants the paper document we can send it if requested or they can print it. This is just another pointless waste of time and money and energy!!!