EPC targets are a threat to the PRS

9:18 AM, 9th February 2022, About 2 years ago 14

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Specialist Buy to Let and commercial bank Shawbrook has released a report concerned about the threat to the rental market posed by a future C rating EPC target. Click here

The headlines of the report indicate that 23% of landlords surveyed say the EPC ratings of their properties are currently D or below and that a further quarter of landlords are unaware of the specific energy efficiency rating of their property.

Shawbrook Bank are concerned Landlords including their own borrowers could be unprepared for the proposed 2025 deadline, resulting in unrentable and unsellable properties.

The proposed regulations would require landlords to make changes to their properties to improve the energy efficiency by 2025 for all new tenancies. This means bringing their property’s EPC rating up to a C or above. For existing tenancies, landlords have until 2028.

Emma Cox, Sales Director at Shawbrook Bank, said:

“Improving the energy efficiency of properties is a vital step in reducing our impact on the environment, however, this will not necessarily be a straightforward process for landlords. The UK has a significant proportion of older properties that are particularly challenging to improve, and many landlords remain in the dark as to their properties’ current ratings.

“Landlords will require further support from both the industry and the government in order to make the changes in good time. Indeed, with the cost of labour and supplies rising, it could be a costly exercise for all landlords, but there are solutions available.

“It is in everyone’s interest that properties are made more energy-efficient, however, this cannot be done half-heartedly, and we must ensure sufficient resources are provided so that landlords can make the appropriate changes to benefit their properties and their tenants.

“We hope that our forthcoming working group provides a space for landlords and the wider industry to share ideas and solutions to confront this challenge, and we look forward to sharing the findings in the coming weeks and months.”

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Comments

Jo Westlake

17:03 PM, 9th February 2022, About 2 years ago

Reply to the comment left by Luke P at 09/02/2022 - 16:51
Reply to Luke P

Interesting. The first one and third one were the same size on both versions of their EPCs. However, the second house was suddenly 20 square metres bigger.

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Reluctant Landlord

20:37 PM, 10th February 2022, About 2 years ago

my advice? Get to know every nook and cranny of your house. Pre measure your loft insulation and check room sizes. On average you know what an assessor is going to look at (if not ask them specifically in advance) and then get all your evidence in place to show them on the day they arrive. When you get the EPC do not accept it until you have been though it with a fine toothcomb and also ask for the SAP calculations they input to get the rating. Pick up EVERYTHING if you have a query. They should be able to quantify everything they input. If not contact their assessment body before you accept it giving the reasons why.
We should NOT have to do this, but if the government are playing silly buggers making it a C, then make sure you get it as close as possible or over that line. One thing less to get slapped with at a later date.

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Grumpy Doug

14:14 PM, 18th February 2022, About 2 years ago

From today's Telegraph, article by Rachel Mortimer. 500 odd outraged comments so far, and still pouring in. The Government aren't really interested in landlord woes as we know. However 15 million furious private homeowners! - happy days. I've pasted the top part of the article below

"The Government’s energy efficiency drive will force 15 million homeowners to each spend thousands of pounds on home improvements.

Around 60pc of all homes in England and Wales currently have an Energy Performance Certificate rating of below C, according to lender Halifax, with older, bigger properties the worst offenders.

The Government wants all homes to be rated at least EPC band C by 2035 as part of its drive for net-zero emissions. The plans will require millions of households to spend substantial sums, which can easily run into the thousands, on improvements. This outlay comes just as they are hit by the worst cost of living crisis in a generation.

However, failing to make upgrades could prove far more costly. Banks and building societies will be required to have an average band C rating across their lending portfolios by 2030, meaning owners of less efficient properties are likely to face higher mortgage costs as banks incentivise customers to upgrade their homes."

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NewYorkie

15:50 PM, 18th February 2022, About 2 years ago

Reply to the comment left by Grumpy Doug at 18/02/2022 - 14:14
I wonder what banks will do when the housing market dries up because they make it impossible for buyers to obtain mortgages?

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