Clarification on whether a commercial property with
no fixed heating requires an Energy Performance Certificate
16 April 2009
1.
Introduction
1.1.
LACORS has been asked to clarify whether EPCs for commercial properties are required in the
following circumstances.
1.2.
Do properties that the lessor is intending to let require an EPC given that:

the properties are not fitted with a heating system at the time they are placed on the
market for renting;

the landlord does not know what the eventual use of the properties will be?
1.3.
These properties are existing properties that have previously been leased but are now available
to be re-leased. The properties do not have heating systems installed at the time they are
placed on the market (but do have service connections to gas/electricity). The properties may
have been leased under an agreement whereby the lessee installed the heating system and has
removed the system upon termination of the lease (a common practice).
1.4.
Therefore the responsibility for installing a heating system (if required) may fall to either the
lessee or lessor. It is not clear at what stage a heating system (if required) would be fitted i.e.
before or after the property is leased (although it probably depends on which party is contracted
to fit the system, if required).
1.5.
CLG guidance suggests that if the premise is intended to be fitted with heating then it should
have an EPC and details how the EPC should be produced. The problem here is that the lessor
may not know what the intention is when s/he places the property on the market. Therefore
depending on the use of the property, it may not require an EPC e.g. if it falls within the scope of
'industrial sites and workshops with low energy demand'.
2.
LACORS’ response
2.1.
LACORS sought views from its specialist property advisers and Communities and Local
Government. LACORS recommends that CLG’s publications on EPCs are duly referred to when
Trading Standards respond to enquiries about EPCs for non-dwellings.
2.2.
In offering this advice LACORS wishes to make it clear that legislation may change over time and
the advice given is based on the information available at the time the opinion was produced. It is
not necessarily comprehensive and is subject to revision in the light of further information. Only
the courts can interpret statutory legislation with any authority. This advice is not intended to be a
definitive guide to, nor substitute for, the relevant law. Independent legal advice should be sought
where appropriate.
2.3.
When properties without a heating system are placed on the market, consideration needs to be
given as to whether such properties are classed as a building i.e. does it use energy to condition
the indoor climate? Buildings that may not require an EPC are likely to be industrial sites and
workshops with low energy demand (see glossary in CLG’s non-dwelling guidance).
2.4.
LACORS suggests that in a situation where properties are not fitted with a heating system at the
time they are placed on the market for renting both of the following sections of CLG’s guidance
are considered, in particular the fourth (italicised) bullet point below.
2.5.
Section 1.2 states:
'1.2
Buildings requiring an energy performance certificate
‘...Where a building is expected to have heating, mechanical ventilation or air conditioning
installed, it will require an EPC based on the assumed fit out in accordance with the
requirements in Part L of the Building Regulations….
Use of energy to condition the indoor climate and the requirement for an EPC
2.6.

fixed services are any part of, or any controls associated with, fixed systems for
heating, mechanical ventilation or air conditioning i.e. those services attached to
the fabric of the building

if there is no intention of having fixed services and no ability to include fixed
services to condition the indoor climate, then an EPC will not be required

if a building is to be let with fixed services, the EPC for the building should
reflect the fixed services actually installed

if a building is to be let without fixed services, but there is an intention that fixed
services will be installed, the EPC should be based on the building's use class
under the planning legislation. This applies whether fixed services have ever
been installed previously in the building, or whether the building is newly
constructed on a "shell and core" basis. For the purposes of producing the EPC,
the activity within the building should be specified in line with business activity
typical of the use class and the most energy intensive fit-out adopted in line with
Part L of the Building Regulations in force when the building was built

energy used directly for heating or cooling a process is not taken to mean
conditioning the indoor climate. Those buildings without any other conditioning
would not require an EPC...”.
Section 4.2.5 states:
4.2.5
Shell and core buildings
For shell and core buildings not all the services will be installed (especially lighting,
mechanical ventilation and cooling) at the point where the building is sold or let.’
In the case of units that are let as bare structures without services at all, but where they
will be fitted out and there is the expectation that energy will be used to condition the
indoor climate, an EPC should be provided.
2.7.
The guidance then refers to compliance with Part L of the Building Regulations (in respect of the
building’s use class in planning legislation). Where no services are installed, Part L defaults to
the ‘worst’ energy rating allowed under Part L.
2.8.
CLG has advised LACORS that their current thinking is that if a property has services connections
to gas/electricity then the default position is that an EPC is required. Furthermore, if the building
is for retail or office use then it follows that the indoor climate will be conditioned and an EPC will
be required.
2.9.
Notwithstanding this, an EPC may not be required if the vendor/landlord can demonstrate by way
of specific marketing usage or planning permission restrictions etc that a property falls within one
of the exemptions (paragraph 1.5 of CLG’s guidance). NB in Scotland the regulations and
exemptions differ – see http://www.opsi.gov.uk/legislation/scotland/ssi2008/ssi_20080309_en_1.
2.10.
LACORS appreciates that a seller will not enquire too deeply about the proposed use, and the
seller/landlord may not know how the buyer/tenant will use the building. Nonetheless, the
seller/landlord will know its use class and LACORS suggests that ascertaining the property's use
class (i.e. if it is retail (A1-A5) or offices and whether people would be employed in the property)
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will assist in determining whether a building requires an EPC.
3.
Conclusion
3.1.
Each case must be determined on an individual basis. For properties that are not fitted with a
heating system at the time they are placed on the market, it will depend on its usage and/or
property use class as to whether an EPC is required. Where a landlord does not know what the
eventual use of the property will be, the use class should provide a guide as to whether an EPC
is required.
LACORS would like to thank the following for their contribution to this response: Fife Council,
Leicestershire County Council, Peterborough City Council and Communities, Sunderland City Council
and Communities & Local Government.
Name:
Organisation:
Address:
Tel no:
Cheri Lloyd
LACORS (Local Authorities Co-ordinators of Regulatory Services)
Local Government House
Smith Square
London SW1P 3HZ
020 7665 3888
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