10:19 AM, 12th February 2025, About 3 hours ago 9
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The way energy performance certificates (EPCs) are measured could be changed as soon as 2026.
The government has launched a consultation on proposed changes to the way EPCs are measured, which they claim will deliver a “more efficient and effective EPC system that works for landlords.”
The consultation is currently open and will run until February 26th
Under the current rules, EPCs are measured based on the amount of energy a property uses per square metre (e.g., for heating, lighting, etc.) and how much energy it loses (e.g., through poor insulation).
The energy assessor first calculates the property’s Standard Assessment Procedure (SAP) score, which is then used to determine the EPC rating.
However, the government proposes six potential metrics to calculate EPCs:
The consultation says: “These metrics together convey the key, complementary aspects of building energy performance, allowing the user to distinguish where the home performs more or less well. Supporting people to keep their energy bills low has always been a key purpose of EPCs and the energy cost metric will provide this information.”
The consultation also proposes requiring a valid EPC throughout the tenancy.
The consultation says: “Currently in both the private and social rental sectors when an EPC expires, a new EPC is only required when a property is re-let and not when the same tenant renews or extends their lease.
“The presence of a valid EPC throughout a tenancy, rather than solely at point of marketing, would ensure landlords and tenants are equipped with accurate and up-to-date information.”
At present an EPC is valid for 10 years, however, the government is considering changes to this rule.
The consultation says: “We are proposing to introduce for private rental properties a new trigger point where an EPC is required for when the current one expires.
“As the Energy Efficiency (Private Rented Property) (England and Wales) Regulations (2015) only applies to private sector properties which are required, or are part of a building which is required, to have a valid EPC, these types of properties (where the EPC has expired, and the same tenant remains in situ) are not covered by the PRS Regulations.
“Requiring a new EPC for rented buildings when the existing one expires would therefore ensure most new lease renewals are captured within the scope of the PRS Regulations.”
For HMOs, the government is considering expanding EPC requirements.
The consultation says: “We are proposing to extend the scope of EPCs so that a valid one is required for an entire house in multiple occupation (HMO) when a single room within it is rented out, as currently the guidance states that an EPC is not required in this instance, only when the whole house is rented out.
“Mandating EPCs for HMOs when a single room is rented out will ensure that HMOs will need to comply with the requirements set out in the MEES Regulations if they did not have a valid EPC before this point.
“This would provide consistency across the private rented sector. As a result, we are proposing a 24-month transitional period for any HMO landlords newly brought into the scope of the regulations to obtain a valid EPC.”
Property118 will be doing a series of articles on the proposed changes to how EPCs are measured and how they will affect landlords.
Landlords can fill out the consultation here and landlords can read the full list of proposals here
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Andrew McCausland
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Sign Up10:43 AM, 12th February 2025, About 3 hours ago
So, the methodology behind EPC's is changing, possibly to be in place by 2026 but also possibly delayed further. Long overdue many of us would say, especially as low carbon installs do not seem to alter the EPC rating much under the current system.
However, aren't the government also demanding landlords improve the EPC ratings of their properties by 2030? If the calculations are to change then how are we to determine what are the best and most cost effective solutions to achieve the magic rating of C? We can't, and therefore most landlords will, completely understandably, kick the can down the road.
There are already insufficient numbers of qualified retrofit builders to achieve what is needed by 2030. If this huge undertaking is delayed by another 1-2+ years then who will be doing all the work in the limited time left?
I run a retrofit company and know the challenges of getting the right staff, qualified and experienced enough to do a good job. I also know that if we have too much work on we simply raise our prices to mange the workflow.
I fully support the aims of the government on carbon reduction and elimination of fuel poverty. However, I believe the timescale for full implementation needs to be looked at again.
The last thing the retrofit industry needs is yet another green policy that changes mid-term. We had too many of these under the last government. It simply discourages the small scale builders needed to deliver the policy from wanting to get involved in this type of work.
Simply put -
2025 to 2030 is VERY unlikely
2027 to 2030 is impossible
Darren Peters
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Sign Up10:55 AM, 12th February 2025, About 3 hours ago
It's not quantum physics. Changing the means and frequency of measurement doesn't change the thing measured. Ie if a new standard is impossible or too expensive to achieve it won't happen. Something else will happen instead.
Tiger
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Sign Up11:10 AM, 12th February 2025, About 3 hours ago
The EPC requirements are in shambles under all respective government. At least the last government knew their shortcomings and held fire until more consultation and more people being trained. Currently nobody knows the criteria and will not have any understanding to communicate the right measures. So first thing first, before setting deadlines for landlords to have the right EPCs, there needs to be consultation and experts identifying what the correct measures are, getting people trained to deliver correct and uniform measures that everyone can understand and above all it has to be cost effective. It is no good for savings of £240 per year for the tenants, the landlord has to pay outright £29k to £15k. For upgrading if EPC, the government has to contribute the major costs either a free grant combined with an interest free loan. This will need to be passed to the tenants rent. No landlord can take on such a large task, among other costs of certification, maintenance and cost of borrowing, the interest payments. Not many landlords pay any capital on the mortgages. Government fo need to work with the delivering companies and the landlords.
David100
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Sign Up11:23 AM, 12th February 2025, About 2 hours ago
Sounds like additional costs for zero benefit.
Why would you repeat an EPC if nothing has changed and the same tenant is in place?
Is the government aiming for lower costs for tenants, or lower carbon emissions so they can look smug at the WEF?
They cant have both, they are contradictory targets.
Cider Drinker
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Sign Up12:19 PM, 12th February 2025, About An hour ago
EPCs should reformed.
Their requirement should be identical across all tenure types.
However, properties with lower rents should be treated more favourably. For example, where the rent I’d £1,600 per month, it may be reasonable to insist on an EPC Rating C or B. Where rent is £500 per month, a Rating D could be more acceptable
Otherwise, government should focus on the worst reforming properties first (maybe the bottom 10%) and maybe when the majority of these are up to standard, focus on the new worst performing properties.
However, if we are going to have lots of wind farms, solar PV farms and new nuclear energy, there is no need to waste the Earth’s resources turning homes into sweat boxes. The CO footprint of making the changes should be assessed. Whilst they’re at it, measure the CO footprint of the West sponsored wars around the world.
Richard James
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Sign Up13:14 PM, 12th February 2025, About 33 minutes ago
I have recently upgraded 8 flats from an EPC E to what was hopefully to be a C rating.
All the flats are the same in the same block.
The assessor missed the fact that we have "Triple glazing" in the bedrooms to start with.
Secondly two of the flats were rated at D (1 point short) and 6 at C.
The assessor has revisited and upgraded all to D.
NO COMMENT!!!
Beaver
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Sign Up13:29 PM, 12th February 2025, About 17 minutes ago
Reply to the comment left by Tiger at 12/02/2025 - 11:10
When the last government proposed that all landlords should be obliged to meet EPC band C with a spending cap, from memory that spending cap was £10K per property.
As I understand the present situation labour are proposing that landlords may have to meet band C for new tenancies by 2028 and for all tenancies by 2030 (I think tenants may be allowed to opt landlords out although I don't know the details).
The last time that this Band C policy was proposed (with the £10K limit) there was a date before which any spend on improving the energy performance of your property did not count towards the £10K cap.
Is there such a date with the current £15K cap proposal? And if so, does anybody know what that date is?
Chris H
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Sign Up13:34 PM, 12th February 2025, About 12 minutes ago
OK, just my 2 pence, on one factor
I own very efficient flats, however the EPC program just assumes the lowest standard of the time and without work, this can not be changed.
So, how much energy it loses (e.g., through poor insulation), is a worst guess scenario.
When I spoke with an EPC accessor, a few years ago, even if I paid a surveyor to spec a property and prove the efficiency through physical inspection and Infrared measure device, the results would not be accepted.
I hope this changes, as I feel several of my properties would perform better than currently measured.
But I feel this is all mute, as if the rental market was fair, before this new banding for private Landlords, all public and social properties should be brough up to private LL current standards, but that will never happen, due to cost, so it is ok for social and council tenants to live in slums, but not the private sector, where we are already a much higher standard....nice double standards not!
If feels like they can throw stones and set insurmountable targets for the private sector but ignore the same rules, it is a total joke
Beaver
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Sign Up13:43 PM, 12th February 2025, About 3 minutes ago
Reply to the comment left by Chris H at 12/02/2025 - 13:34
I agree with this: I have done something similar; I've had someone who did this professionally point a thermal camera at my property with the heating on in winter and shown that the energy is not being lost from the walls. But the EPC assessment is still biased towards:
- source of heating (e.g. gas condensing boiler)
- cavity wall insulation
- type of windows
And you are unlikely to get a grant unless you install CWI, which may damage your building.
The EPC system does also include assessment of ventilation. Because of this you might be penalised for having a fireplace but it seems to me that you ought to gain a lot of points for adding a porch because when the tenant opens the door to let in the kids, the dog, or bring in the shopping then a lot of energy can be lost.
If you can provide evidence showing that the assumptions in the EPC are wrong and put forward a plan to improve the energy performance of the building based on real measurements and data then the system ought to allow you to challenge the EPC.
Does anybody know if with the new proposals (£15K cap) there's a date before which any improvements that you make don't count towards your £15K spending cap?