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The report shows that Landlord compliance with the one year old Energy Performance Certificate legislation for commercial property (currently for sale or let) was still very low, with only 22% of commercial property appearing to carry a valid Energy Performance Certificate.  This may well be representative of currently depressed market conditions.

Areas surveyed with their compliance ratings were:                                               

Area

Sample Size

With EPC

No EPC

Not Found

Bristol

Bath & North East Somerset

Dorset

Cornwall

Wiltshire

200

228

55

125

115

723

44 (22%)

61 (26%)

10 (18%)

22 (17%)

20 (17%)

157 (22%)

103 (52%)

54 (23%)

29 (52%)

73 (58%)

39 (34%)

298 (41%)

53 (25%)

113 (49%)

16 (30%)

30 (24%)

56 (49%)

268 (37%)

Although these results must be qualified by the methodology used, they have surprised many industry professionals, who have considered EPC compliance to be over 80%.  Whilst Quidos have stressed that the figures are at best illustrative and focussed only on the South West, they do highlight a lack of industry compliance that they believe is likely to be repeated across the UK.

Trading Standards Officers across the region are now understood to be taking an active interest in the findings of the report.  With EPC prices at an all time low, advice to Landlords is to have available property surveyed to avoid on-the-spot fines of up to £5,000.

If an EPC has not been produced and it is recommended that a contractual provision should be added to the Agreement for Lease or Sale Agreement, this may not be wise, as it is tantamount to an admission that the necessary requirements have not been complied with and that as a result, sellers or landlords may be exposed to enforcement action.  If Heads of Terms have been prepared the time for production of an EPC may already have passed, especially if the perspective tenant or buyer has made a site inspection.

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