Final update:
Exemption for self catering properties from the requirement of an Energy Performance Certificate has been confirmed by the Government.
Grant Shapps (Minister of State (Housing and Local Government), Communities and Local Government; Welwyn Hatfield, Conservative) holding answer 10 November 2011.
'Following the Westminster Hall debate initiated by my hon. Friend, 14 June 2011, Hansard, column 230WH, Ministers have reviewed the implementation of the legislation to see if unnecessary regulations on holiday lets could be removed. This has taken place under the auspices of the Government's Red Tape Challenge'.
'We have listened carefully to the concerns raised by hon. Members and the tourism industry and have concluded that an energy performance certificate should not be required for a holiday let where: the property is rented out for less than four months in a year; or it is let under a licence to occupy-regardless of the amount of time it is occupied'.
'A licence to occupy is an arrangement where the holidaymaker does not have exclusive use of the property; for example, where the property owner or their representative has the right to access the premises during the period of the booking. My Department will be publishing detailed guidance on this issue shortly. We will also be making appropriate amendments to the Energy Performance of Buildings Regulations'.
Update 09 September:
In response to a recent question from Andrew Stevenson, MP for Pendle, the Government representative confirmed that a number of other EU countries were not requiring EPCs for holiday lets.
Bill Wiggin MP, representing the Government said that "I have investigated this and it seems to be a classic case of gold-plating. We have made inquiries to establish the position in other European Union countries and it seems that, as my hon. Friend said, EPCs are not required for holiday lets in a number of other member states, including Germany, Sweden and Denmark-he also mentioned France and Scotland. It gives me great pleasure to tell the House that we should have a clearly defined position on this within the next few weeks."
Self catering operators wishing to follow the debate should visit The English Association of Self Catering Operators (EASCO) Facebook page
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Update 12 July:
The Tourism Alliance yesterday reported that they have met with John Penrose (Minister for Tourism) regarding the issue.
"Last Monday we met with John Penrose and provided a further briefing which explained our belief that the reasons stated for needing to introduce this requirement are not necessarily correct. As a result, the Minister has been making further representations on our behalf, which we understand have been well received.
So while there is no official change in the Government's position, it seems like things may be moving in the right direction and we expect to hear back from Government in a few weeks time".
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You may have seen recent media coverage regarding the requirement for holiday homes to have an Energy Performance Certificate (EPC) from 30th June.
The lifting of the exemption that had been applied to holiday homes continues to be contested by many self catering organisations leaving an uncertain situation regarding the requirements and level of enforcement.
The Energy Performance of Buildings (Certificates & Inspections) Regulations 2007 were applied by the Government with an exemption for self catering properties but this has now been reversed (the only exception being properties let for a combined total of less than 20 weeks in a year).
The original rationale of the legislation was to drive improvements in energy efficiency, but critics argue that rising bills provide sufficient motivation, that there are more effective means of communicating with customers, and many business have already surpassed this basic requirement through participation in energy saving/ green initiatives.
Obtaining an EPC typically costs £50 to £80 and is valid for 10 years.
The English Association of Self Catering Operators (EASCO), which has been in regular dialogue with the Government over the issue, has received legal advice over the Government's view that letting a property to holiday makers is a form of tenancy. Their conclusion is that, while there remain grounds to question the Government's interpretation, they "cannot say for certain that you do not need an EPC" but that it would seem "extremely unlikely that any local authority in England would prosecute or issue a fixed penalty notice in a holiday cottage situation".
Clarity is also being sought over communication of the EPC to customers. EASCO reported on 2nd March that "the Government do not intend to implement any requirements for including EPC ratings in advertising, brochures, websites etc. for self-catering holiday homes in the near future. This may become a requirement when the EU Directive is revised in 2014". However, current official guidance appears ambiguous, stating that the rating "should be made available (in electronic or paper format) to a prospective tenant at the earliest opportunity; and in any event before entering into a contract to rent out the building".
The EASCO Facebook page is providing updates of developments on the issue.
The safest course of action would be to contact your local trading standards officer, prepare to have an EPC carried out and remain in touch with developments. Regulations provide scope for "a reasonable amount of time" for owners to comply so the EPC does not have to be completed by 30 June.
To find an accredited person to undertake an Energy Performance Certificate click here. To view last week's debate at Parliament on the issue click here
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