Navigating EPCs for common areas and why it matters

For property managers and landlords, navigating the world of Energy Performance Certificates (EPCs) for blocks of flats can be confusing. While individual flats require their own EPCs, what about the common areas? How do you assess the energy performance of a building that has a mix of residential and non-residential spaces, or uses a shared heating system? Here, we delve into all the answers to these burning questions. 

What is an EPC and what does it measure?

An EPC provides a building's energy efficiency rating, similar to the labels on household appliances. This rating, from A (most efficient) to G (least efficient), is a measure of a building's energy consumption and carbon dioxide (CO2) emissions. 

The calculation for a building's energy performance is complex, taking into account several factors, including:

• Building fabric – The construction materials of walls, roofs, floors, and windows. 
• Systems – The efficiency of heating, cooling, ventilation, and hot water systems. 
• Lighting – The types of lighting and controls used. 
• Building use – The purpose and occupancy patterns of different areas, such as offices, retail, or residential.

We delve into EPCs in full in our explainer guide. Read it here.

EPC requirements for common areas in blocks

The requirements for an EPC can vary significantly depending on the building's use, occupancy, and heating systems.

Blocks with a common heating system

If a block of flats or an office building shares a central heating system, the landlord or seller is typically required to provide a single EPC for the entire building. This assessment must include the common areas. However, they can also provide an individual EPC for a specific part of the building if needed. 

Separate dwellings within the block will still need their own individual EPCs, which is the responsibility of the property manager. The assessment for a single flat can sometimes be based on a similar or representative flat in the same block.

Blocks with independent heating systems

In buildings where each part has its own independent heating system, property managers have a couple of options, such as:

• Provide an EPC for each individual unit, along with a separate EPC for the conditioned communal areas. 
• Provide a single EPC for the entire building.

Each separate dwelling will still require its own EPC, assessed using specific residential methodology.

The EPC assessment process

When an energy assessor is commissioned to produce an EPC, the process involves three main steps. These are:

1. Gathering information – The assessor will collect details about the building's layout, construction materials, and the use of each zone. Having up-to-date plans and information will make this process faster. 
2. Analysing and zoning – The assessor will analyse the gathered information and identify different zones within the building based on their use (e.g., office space, kitchens, storage). This helps to understand the specific energy demands of each area. 
3. Software input – The information is entered into government-approved software to produce the EPC and a recommendation report.

The recommendation report is a crucial part of the EPC. It provides guidance on how to improve the building's energy efficiency, with suggestions categorised by their potential payback period, such as short, medium, or long-term.

The importance of retrofitting

Energy efficiency is no longer just a regulatory requirement but a key factor for landlords and leaseholders alike, especially with rising energy costs. This is where retrofitting comes in. 

Retrofitting is the process of upgrading a building to improve its energy efficiency and reduce its carbon footprint. This can include a range of works, from simple, "easy wins" to more complex, large-scale projects:

• Easy wins – Draught-proofing, installing LED lighting, pipe lagging, and smart meters. 
• Larger projects – External wall insulation, roof insulation, and upgrading windows to double or triple glazing. 
• Future-proofing – Installing heat pumps, which are becoming a common alternative to gas boilers, though a “fabric first” approach is recommended to ensure the building is well-insulated before installation.

A significant challenge for blocks of flats is that a leaseholder’s ability to improve their unit’s EPC rating may be limited by the building's overall fabric. For example, if the external walls or roof are poorly insulated, the flat owner is dependent on the building owner to invest in these large-scale upgrades. This highlights the need for a building-wide approach to retrofit.

Final thoughts

As the government moves toward a net-zero target by 2050, more legislation is likely to be introduced. For example, by 2030, newly rented properties in the UK are expected to achieve a minimum EPC rating of C. 

While there is currently no official EPC for an entire block of flats, the industry is moving in that direction. Property managers and landlords should start planning for future regulations now by conducting assessments and identifying potential retrofit projects.

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