EPC madness: Are EPCRR judgements failing?

EPC madness: Are EPCRR judgements failing?

0:01 AM, 3rd October 2024, About 13 hours ago 6

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I want to be environmentally conscious (who doesn’t?) and improve the legacy of both property and planet. I also want to be a good landlord (who doesn’t?) and enhance my tenants’ living conditions and cash flow.

But when the EPCRR (Recommendation Report) suggests that I should be spending £4,000 to £14,000 on “internal or external wall insulation” in order to afford my tenant a saving of £72 over 3 years(!), then something is not right in this process.

Put it another way, this renders the tenant a potential saving of 0.514% of their projected 3 year utility expenditure. How on earth can this be considered a justifiable expense to the landlord?

It is beyond bonkers or am I mistaken?

Surely the carbon footprint of £14k’s worth of construction materials, labour and transport through slow-moving London traffic is not sufficient to offset the measly saving on my tenant’s heating!?

This spurious item was Recommendation 2 (of 3 in total), made on one of my more recent EPCRRs.

Surveyed in early 2018, it is safe to say that there will now have been some significant changes in the estimated costings for installation particularly as the construction sector gets it’s inevitable ‘EPC-improvements! bandwagon on the road. Watch it happen!

The fallacy of EPCs and their shambolic guidance for property improvements in the PRS is only further exposed when Recommendation 3 on the same 2018 report [“Installation of Low Energy Light Bulbs”] can be achieved at an indicative cost of £15 yet creating a comparatively high(!) yield of saving for the tenant at a princely sum of £45 (again, across 3 years).

An easy win, which I’ll take – thank you very much – but will only expect it to last as long as the tenants remember to replace low-wattage bulbs for the same.

Don’t even get me started on Recommendation 1!

Suffice to say that, even if all 3 Recommendations for this property were met with bells on, the proposed £17,015 of initial expenditure would only save this particular tenant £366 across 3 years (or a 2.151% saving); and would help the property stagger from a mid-D to a very low-C rating, keeping the property at risk from future EPC hikes – and in no way really improving my tenant’s lifestyle.

Am I simply not seeing some grander vision of eco-credibility & tenant comfort?

I’d be interested to hear Property118’s readers’ thoughts.

PS: my other 4 properties – as well as my commercial property – all received equally spurious Recommendation Reports.

Thanks,

Alex


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Cider Drinker

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7:45 AM, 3rd October 2024, About 6 hours ago

The grander vision that you seek is net migration.

Energy suppliers struggled to ‘keep the lights on’ last winter. Rather than tackle mass migration, Labour plan to build 1.5 million more homes. Each and every one will need power and Labour are not planning for more nuclear power stations over the next 5 years. There’ll be no additional gas powered power stations and GB Energy is unlikely to be delivering green energy in time.

Why is this? Why won’t they tackle net migration?

Firstly, politicians are scared of their own shadows. They fear being labelled a racists.

Secondly, governments worldwide are always striving for growth. Pretty much like a Ponzi Scheme depends on growth to keep the plates spinning. And, of course, more people means more customers for the media, retailers and bigger profits for their shareholders. Let’s just ignore increased crime and civil unrest, the housing crisis, the massive increase in the benefits bill and the wasted £billions on fighting legal challenges. The government just prints more money, right?

Peter Collard

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10:21 AM, 3rd October 2024, About 3 hours ago

Adding to the power requirements are all those EVs. My basic Model 3 sucks up the entire capacity of 7 houses when I'm at the supercharger.

Geoff

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10:30 AM, 3rd October 2024, About 3 hours ago

For balance -
1) the EPC provides “recommendations”. There is the potential for the recommendations to be implemented as part, other larger, improvements that might be considered in the years ahead.
2) Would you prefer the EPC to provide no recommendations?
3) The tenant is unlikely to replace an LED lightbulb with a tungsten filament bulb when the tungsten filament bulbs are no longer on sale,

Ectoplasm

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12:14 PM, 3rd October 2024, About An hour ago

Agreed - the EPC report is an outdated, blunt instrument, poorly designed and totally lacking any allowance for common sense or surveyor discretion.

If we understand that the principle justifications for the EPC assessment are:
a) to encourage homeowners and landlords to reduce the carbon footprint of their property(ies); and
b) to protect buyers and tenants from excessive energy bills...
... then the report surely must:
a) take account of the actually annual energy consumption - for example, for the previous year, or an average of the previous 2 or 3 years;
b) give credit points for the proportion of green energy consumption. Some properties may run entirely on supplied green electricity from renewable sources.
c) (controversial suggestion:) encourage both tenants and landlords to improve efficiency. I suggest an option to split all energy bills between them (80/20, 60/40, 50/50, or whatever), so that both are incentivised to make efficiency improvements.

Alex St Claire

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14:10 PM, 3rd October 2024, Less than a minute ago

Reply to the comment left by Geoff at 03/10/2024 - 10:30
True enough - though there really is no arguing that the current EPC model is outdated & lacks any kind of precision.

But, more importantly, there is no allowance for renter autonomy or surveyor discretion...

We have been hearing for some time now that, if the property is from old 'housing stock', then there is a pre-determined ceiling of sorts - beyond which the EPC rating can never really manage to go...

Algorithmically, the surveyor's report will churn out a higher rating for a new build than for an older property - even with comparable u-values & eco-installations in both...simply because it has a build date of [in the example's case] 1908. This auto-bias was confirmed by another surveyor I discussed the EPCs with, a few years ago.

Furthermore, the first example for recommended works that was given in the original post [£14k expenditure for a £72 saving on bills over 3 years] should surely have been quashed - or, at the very least, heavily annotated - by the surveyor: condemned as a computer-based error in logic and clearly an inappropriate use of resources...rather than it then going on to constitute part of an official, publicly available document. I'm sorry, but no matter which way one rubs them up, there simply is no defending those figures.

The proposed system vilifies older properties within the sector - allowing no 'buyer discretion' (surely if one wants to live in an older property then that should be up to the individual!?) & allows politicians et al to continue lambasting landlords - simply for owning/renting out these properties.

Is the idea to remove all older property from the PRS - representing an enormous portion of the UK's housing stock? Given the national mandate to supply more houses - this seems an unlikely & unrealistic goal...

Or [foil cap alert] is this a nepotistic opportunity for the government to promote rampant (cheap) mass construction & EPC-based upgrade projects, with favoured national/overnight-starter firms? ["PPE, anyone?"]..!

Alex St Claire

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14:14 PM, 3rd October 2024, Less than a minute ago

True enough - though there really is no arguing that the current EPC model is outdated & lacks any kind of precision.

But, more importantly, there is no allowance for renter autonomy or surveyor discretion...

We have been hearing for some time now that, if the property is from old 'housing stock', then there is a pre-determined ceiling of sorts - beyond which the EPC rating can never really manage to go...

Algorithmically, the surveyor's report will churn out a higher rating for a new build than for an older property - even with comparable u-values & eco-installations in both...simply because it has a build date of [in the example's case] 1908. This auto-bias was confirmed by another surveyor I discussed the EPCs with, a few years ago.

Furthermore, the first example for recommended works that was given in the original post [£14k expenditure for a £72 saving on bills over 3 years] should surely have been quashed - or, at the very least, heavily annotated - by the surveyor: condemned as a computer-based error in logic and clearly an inappropriate use of resources...rather than it then going on to constitute part of an official, publicly available document. I'm sorry, but no matter which way one rubs them up, there simply is no defending those figures.

The proposed system vilifies older properties within the sector - allowing no 'buyer discretion' (surely if one wants to live in an older property then that should be up to the individual!?) & allows politicians et al to continue lambasting landlords - simply for owning/renting out these properties.

Is the idea to completely remove all older property from the PRS - representing an enormous portion of the UK's housing stock? Given the national mandate to supply more houses - this seems an unlikely & unrealistic goal...

Or [foil cap alert] is this a nepotistic opportunity for the government to promote rampant (cheap) mass construction & EPC-based upgrade projects, with favoured national/overnight-starter firms? ["PPE, anyone?"]..! ...Perish the thought.

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