EPCs: lessees must pay, not pubco

Lessees looking to sell their pub are being reminded they have to pay for an energy performance certificate (EPC) - not their pubco.

Since October 1, all commercial buildings sold or leased require an EPC, showing the property's energy rating. Any vendor failing to produce an EPC can face a fine of up to £5,000.

But confusion has arisen as to who is responsible for paying for a leased pub's EPC - which can cost between £700 and £1,000.

Adrian Straatman, a Punch lessee at the Old Tiger's Head, in Lee, South East London, was shocked to find he would have to pay out for an EPC, when selling his lease.

"I was under the impression it was the responsibility of the landlord," he said. "There was nothing in our lease that mentions this and £1,000 isn't chicken feed.

"Punch said they are responsible for it being executed, but I have to pay for it.

"It's hard enough selling at the moment as it is."

However, a spokeswoman for Punch Taverns said: "If it's a lease assignment it becomes the responsibility of the licensee. But if the lease has come to the end of its natural life and Punch is recruiting for a new licensee, then it's our responsibility."

The Department for Communities and Local Government (DCLG) confirmed this was the case.

A spokesman said: "It will be the person selling the lease, the one who is getting money for the sale, who is responsible for the EPC," he said.

However tenants will not be made to foot the bill for EPCs.

Fears had also arisen that a lack of qualified assessors for EPCs would cause problems for the industry.

However the government said it would not take a "draconian approach" in the first few months, although prosecutions were still possible.