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An Energy Performance Certificate (EPC) is a document that highlights the energy efficiency of a property. It is based on a rating system with A being the most efficient rating and G being the least efficient rating. A colour-coded graph, similar to those found on household appliances, is produced. In most circumstances, it is a legal requirement to obtain an EPC when selling or renting a property, and the certificate remains valid for 10 years. 

However, the rules surrounding an EPC for listed buildings are often misunderstood. While many property owners assume that all listed buildings are exempt, the reality is more complex.

Not every building needs an EPC. Some exemptions include places of worship, buildings to be demolished and temporary buildings. However, for listed buildings, government guidance is perhaps not as clear as it could be and, as a result, it is often misinterpreted. It is incorrectly assumed that the rules state that listed buildings do not need an EPC. 

In fact, the EPC regulations don’t state that listed buildings are exempt from the requirement to obtain EPCs; rather they are exempt “insofar as compliance with certain minimum energy performance requirements would unacceptably alter their character or appearance”. This is a subtle but important difference.

For example, replacing single-pane sash windows in a listed property with double-glazed windows would almost certainly “unacceptably alter” the character of a property where the façade and/or windows are the listed feature, meaning the property would be exempt from EPC requirements. However, upgrading internal lighting to efficient LED lighting would not affect the façade or character, so the property would not be exempt.

To determine whether a particular property is exempt, a property owner will first need to work out:

• What the potential or recommended energy efficiency improvement works are required for the property; and
• Whether implementing those recommendations would unacceptably alter the character or appearance of the property. It is likely that an EPC assessor will need to be instructed to evaluate this. In short, this is a bit of a chicken-and-egg situation. Property owners essentially need to undertake an EPC survey to work out whether an EPC is required.

A property owner would also have to inspect the listing particulars of the property to ascertain what the unique listed characteristics are. There is no definitive list of unacceptable alterations to listed buildings, but government guidance does say that “many of the recommendations in an EPC report, e.g. double glazing, new doors and windows, external wall insulation, and external boiler flues, would likely result in unacceptable alterations in the majority of historic buildings.” The guidance goes on to say that it is for the property owner to judge whether the recommended alterations would unacceptably alter the listed building, and to contact their local authority’s conservation officer if unsure about the property’s exemption status. 

One approach may be to seek specialist advice on whether the energy efficiency improvements recommended by an EPC assessor would require listed building consent and, if so, whether such consent is likely to be refused. If no consent is needed, or if it is expected to be granted, then it seems an EPC would be needed.

It may even be simpler for property owners to obtain EPCs for listed buildings regardless; however, this could cause complications because of the new Minimum Energy Efficiency Standards (MEES) regulations, which make it unlawful for a landlord of a property rated F or G to grant a new tenancy, or continue to let the property (even if the lease was granted many years ago), unless an exemption applies. If there is no requirement to hold a valid EPC, then there is no obligation to comply with MEES. Therefore, where a property is believed to have poor energy efficiency but the landlord is confident no EPC is legally required, it may be best not to obtain one.

The wording of the law is unclear, but it is worth noting that falling foul of these regulations can have quite severe consequences. The maximum penalty for selling or leasing a property without an EPC, where one is required, is currently £5,000. The penalty for letting a F or G rated commercial property in breach of MEES is up to 20% of the rateable value of the property, subject to a maximum of £150,000.Whether you are selling a listed building, period property, commercial premises, or land, understanding your legal obligations before marketing is essential.

At Robinson & Hall Auctions, our experienced team can guide you through the selling process and help you achieve a successful sale. If you’re considering selling a property by auction and would like expert advice or a free valuation, please get in touch with our team today on 01280 818907 or email auctions@robinsonandhall.co.uk