The question of Listed Buildings and whether or not they are exempt from Energy Performance Certification (EPC) has been an ambiguous issue for some time now.
Back in 2018, the Ministry for Housing, Communities & Local Government updated their guidance in relation to this issue with listed buildings and those living in conservation areas.
However, the bad news is the legislation around this issue is still a little cloudy to this day.
What is the Function of an EPC?
EPCs are considered a compliance tool rather than a design one, for example, when an existing property is sold or rented.
EPCs are not used to provide a complete audit of a building, but rather as a means to assess the building and provide a list of recommendation to improve energy efficiency.
The kind of fuel source for heating a building and providing hot water has a significant bearing on an EPC rating, which are based on standard occupancy and energy use assumptions, meaning they do not take actual usage into account.
The recommended measure of an EPC is based on the cost of the fuel rather than the actual energy efficiency, which means it can be quite misleading and may not always be appropriate for the building in question. This is especially the case when it comes to older builders where measures such as solid wall insulation may present a risk to the fabric of the building.
This means that the Environmental Impact Rating is based on the assessment of the amount of CO2 emissions that are being produced by that building by assessing overall fuel costs.
The requirement to abide by the Minimum Energy Efficiency Standards are linked with EPCs and came into force in April 2018.
As from this date any new letting or renewal must reach a minimum E rating under an EPC and from 1st of April this year, this extended to all existing lets.
Are There Exemptions?
Some residential properties are exempt from the necessity to obtain an EPC when they are rented or sold, which means that Minimum Energy Efficiency Standards do not apply in these cases.
It is generally understood that this is applicable to Listed Buildings.
However, this hinges on the interpretation of the EU directive, which is neither well-drafted nor completely clear. Buildings that are protected as “part of the designated environment or because of their ‘special architectural or historical merit’” are exempt from requiring an EPC “insofar as compliance with minimum energy performance requirements would unacceptably alter their character or appearance”.
This still applies if an EPC was already in place because it would count as being obtained on a voluntary basis, not as a critical necessity at the point of rent or sale.
The revised Government Guidance is as follows: “To comply with minimum energy performance requirements, 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 a majority of historic buildings.”
This suggests that if there is any concern as to whether the relevant works would unacceptably alter the appearance or character of a listed building, owners must seek the advice of their local planning authority.
However, the issue here is that unless you have an EPC you will never know whether the property meets the necessary minimum E requirements or what work will actually need to be undertaken – which is vital in knowing whether they are unacceptable works or not.
What Can You Do?
The best thing for any landlords or sellers concerned about the potential risk of not knowing whether you are reaching the minimum E requirement, is to speak to your local conservation officer and ascertain what work is recommended by an EPC and carry out these works.
You could then undertake the permitted works and then register an exemption on the EPC register for the other work that your conservation officer would not agree to.
Realistically, this issue can only really be clarified once the dust has settled on Brexit since the EPC legislation is based on EU law.
If you would like any advice or help with a listed property, EPCs, Minimum Energy Efficiency Standards or you are interested in any of our other services, why not contact us today?
