Member Article

Revised EPC regulations: Where commercial premises larger than 500m² are frequently visited by the public and have an EPC, it must now be displayed at the premises. This new requirement was introduced by the Energy Performance of Buildings (England and Wales) Regulations 2012, which came into force on 9 January 2013. They replace all existing regulations on energy performance certificates, display energy certificates and air conditioning inspections.

DCLG has issued replacement guidance booklets on how to interpret these regulations for domestic buildings, non-domestic buildings, public buildings, air conditioning inspections and the application of the EPC regime to holiday lets.

Most of the previous regime is unchanged. However, there are some new provisions, while others have been removed on grounds of being unnecessary 'gold plating'.

Green Deal: Green Deal plans can be agreed from 28 January 2013 and have implications for both commercial and residential property. The Green Deal is a funding mechanism for energy efficiency improvements to property without the need for consumers to pay up-front for energy efficiency measures. Payment is made in instalments through the energy bill.

Click here for more information (http://www.shoosmiths.co.uk/client-resources/legal-updates/The-Green-Deal-Why-not-take-advantage-4721.aspx).

Community Infrastructure Levy: CIL is a levy allowing local authorities in England and Wales to charge a set tariff for various new developments in their area. It cannot be charged unless there is an adopted charging schedule. A growing number of local authorities have now done this, with many more going through the process.

The CIL regulations were amended on 29 November 2012 to clarify a number of areas, including the application of CIL charges where a planning permission is subsequently varied by a new permission.

CRC simplification: In its autumn statement, the Government announced that:

 - CRC will be simplified from 2013, rather than scrapped

 - CRC Performance League Table will be abolished from 2013

 - Price of CRC allowances will be: £12 per tonne of carbon dioxide (tCO2) in 2013-14; £16/tCO2 in 2014-15; from 2015-16 onwards, the price will increase in line with the Retail Prices Index.

The Government will review the effectiveness of the CRC in 2016 and consider whether the same policy objectives could be achieved in a different way.

Scrapping of requirement to register rent deposit deeds at Companies House: This change is to be introduced by regulations in accordance with the Companies Act 2006, which are due to come into force on 6 April 2013.

Flooding and insurance: The agreement between the Government and the Association of British Insurers (ABI) known as the Statement of Principles has helped keep flood cover available and reduce insurance premiums. However, it expires in June 2013 and will not be renewed.

The Government is discussing with the ABI what alternative scheme - if any - can be agreed to keep flood cover available and affordable for owners of properties at risk.

Their decision is considerably overdue (originally planned for Spring 2012), partly because current austerity measures mean that the Government does not wish to become insurer of last resort for such properties. It is unlikely that any scheme agreed will apply to all properties at risk, or will prevent insurers from setting higher excesses or other conditions for such insurance.

In the meantime, the Environment Agency has issued a template report for property owners to use when installing flood protection measures. The report contains information on flood risk with and without the measures, and has been welcomed by the ABI as helping to set out the flood risk information insurers may ask for.

Some simplification of SDLT on leases: There is to be a simplification of SDLT on leases in the Finance Bill, with the changes likely to come into effect in July 2013. The draft Bill includes provision for changes to the SDLT treatment of leases, including the abolition of the rules on abnormal rent increases and some simplification of reporting requirements.

Chancel repair liability and other historic interests will cease to be overriding interests: Chancel repair liability will cease to be an overriding interest affecting purchasers for value with effect from 13 October 2013.

This is just one in a list of historic interests that will lose their overriding status at midnight on 12 October 2013:

 - a franchise

 - a manorial right

 - a right to rent that was reserved to the Crown on the granting of any freehold estate (whether or not the right is still vested in the Crown)

 - a non-statutory right in respect of an embankment or sea or river wall

 - a right to payment in lieu of tithe

 - a right in respect of the repair of a church chancel

Refer to Land Registry Practice Guide 66 for details. (http://www.landregistry.gov.uk/professional/guides/practice-guide-66)

Growth and Infrastructure Bill: This bill is currently going through Parliament. The majority of its provisions propose amendments to the planning system and there are important property implications, including:

 - restrictions on the registration of land as town or village greens

 - provisions relating to the review of planning obligations

 - an ability to apply for stopping up or diversion of highways and public paths before planning permission has been granted

 - postponement of the next business rate revaluation

Sustainable drainage systems (SuDS): The Government wants to encourage developers to build more SuDS to help tackle problems caused by surface water flooding, which overloads conventional drainage systems. Examples of SuDs include basins and ponds, soakaways and permeable surfaces (such as permeable paving).

Last summer, Defra published the summary of responses to the consultation on proposals to implement the requirements for SuDS in England which are provided for in Schedule 3 of the Flood and Water Management Act 2010.

Defra was proposing an implementation date of October 2012, but announced in June that it would be delayed and that it would prepare the Government response and implementation plans as soon as possible.

Review of Use Classes Order and Permitted Development Rights: Last year, the Government consulted on measures (applying to England only) to provide new opportunities for sustainable development and growth through the reuse of existing buildings including:

-increasing the permitted development threshold for change of use from class B1 (business/office) to class B8 (warehouse) and from class B2 (industry) to class B1 and class B8

- allowing temporary use for two years of certain existing buildings without the need for planning permission where the use is low impact in order to open up premises for new businesses and allow redundant buildings to be brought back into use

-giving permitted development rights to allow change of use from class C1 (hotels, boarding and guest houses) to class C3 (dwelling houses) without the need for planning permission

-updating or amending the existing descriptions within the Town and Country Planning (Use Classes) Order 1987

Changes are expected in 2013 as part of the general stream-lining of the planning system.

Deregulating listed building consents:Last year, the Government also consulted on simplifying the current listed building consents process.

The proposals aim to reduce the circumstances in which listed building consent is required and to reduce the level of information applicants are required to submit to the local planning authority.

Some listed building consent proposals are in Schedule 16 to the Enterprise and Regulatory Reform Bill which is expected to be passed in early 2013.

Rights to light: In March last year, the Law Commission began a year-long review of rights to light to investigate whether the current law provides an appropriate balance between those who benefit from the rights and those who wish to develop land.

The Commission will also examine the inter-relationship between rights to light and the planning system, and will consider the remedies available to the courts.

It is due to publish a consultation paper in early 2013. After analysing responses it will discuss with DCLG whether further work is appropriate. If so, a final report and draft bill is expected to be published in late 2014 or early 2015.

Telecommunications Code: In June last year, the Law Commission published a consultation on proposals for reforming the Electronic Communications Code.

Andrew Farmery and Zoe Wright, partners in Shoosmiths' real estate team were invited by the Law Commission to comment on issues relating to the current Code, in recognition of their expertise in this area. They have also submitted a response to the consultation.

The consultation period closed on 28 October and the Commission should publish its report and recommendations during spring 2013. The review of this area is seen as a priority by the Government which is proposing to review and issue draft legislation in summer 2013.

Easements and covenants: In 2008, the Law Commission published a consultation containing proposals to modernise and simplify the law relating to easements and covenants. The Commission published its report in June 2011, which included a draft bill. The Law Commission's website indicates that it is still awaiting the Government's response to its proposals.