As of 1st October 2008, all sellers of freehold and leasehold businesses, as well as landlords of commercial property, are required by law to provide a Commercial Energy Performance Certificate (CEPC) or Energy Performance Certificate (EPC) for short.

The EPC, which is based on an asset rating system - A (good) through to G (poor) - is intended to give an estimate of the energy usage and CO2 emissions of a building. It is carried out by an accredited energy assessor and is valid for 10 years. It must be available to prospective buyers and tenants before a viewing is conducted or when sales details are provided.

If a business or commercial property was already on the market before 1st October 2008 and remains on the market, then it will need an EPC by 4th January 2009 at the latest. If however it is sold or rented out before this 2009 deadline, then an EPC must be provided as soon as possible.

The following properties do not require an EPC:

• Places of worship
• Commercial buildings under 50 square metres
• Temporary buildings
• Buildings to be demolished within two years
• Industrial buildings with low energy use where the space is mostly not heated or cooled

Inspection of air conditioning systems will also be required from January 2009.

Does a business now need a Home Information Pack (HIP)?

Businesses, where the property is only suitable for non-residential or dual use, are still exempt from requiring a HIP, although it is useful to be aware of the grey areas concerning guesthouses and B&Bs:

• Guesthouses with no owner’s accommodation do not need a HIP.
• Guesthouses with living accommodation for owners within the same property (i.e. dual use) do not need a HIP.
• Guesthouses with detached owner’s accommodation do need a HIP for the detached residential dwelling.
• Guesthouses which are primarily residential, in that they are not specifically adapted for commercial use and have only two letting bedrooms, do need a HIP.