EPC targets could face delays without flexible approach warns industry body

EPC targets could face delays without flexible approach warns industry body

10:08 AM, 21st August 2024, About 2 months ago 6

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More than 340,000 homes must be upgraded every year to hit 2030 EPC C targets.

However, Propertymark says at the current rate, it will take an extra 12 years to get all rented homes up to EPC C standards.

Ed Miliband has previously said that all landlords must meet EPC C targets by 2030.

Must not be a one-size-fits-all approach

Propertymark’s report, Lagging Behind: Energy Efficiency in Low-Viability Properties, reveals a stark disparity in upgrading properties to meet EPC targets.

In some northern and midlands local authority areas, improving home energy efficiency can cost up to 25% of the property’s value. However, in affluent areas of London and the Southeast, installing heat pumps costs less than 2% of the property’s value.

Propertymark argues that the government must understand that energy efficiency targets can’t be a one-size-fits-all approach.

The industry body said: “We continue to lobby decision-makers to move away from a one-size-fits-all policy and develop energy efficiency proposals that work with the different ages, conditions, and sizes of properties.

“Failure to factor in the huge regional variations in property prices when incentivising homeowners and landlords to retrofit their properties to meet national net zero targets risks damaging the quality and availability of housing stock.”

Encourages people rather than penalise them

In 2024, newly built homes with an EPC A rating typically yield 5.5%, while D-rated homes offer 7.6%. The least efficient EPC E homes provide the highest returns at 7.9%.

However, Reapit’s analysis of 52,000 rental properties across England, Scotland, and Wales indicates that up to 880,000 rental homes—17% of the market—could be lost if landlords choose to sell rather than upgrade properties with EPC ratings of E, F, or G.

Meanwhile, research from Hamptons shows that 55% of newly EPC-certified rental properties achieved a rating of C or better, compared to 48% of owner-occupied homes. However, it’s estimated that 3-4% of rented homes may never reach an EPC rating of A-C.

Propertymark said: “We want to see more energy-efficient homes, but, as we have long said, the rules and requirements must be realistic and achievable for the sector.

“Any future targets must be fully backed by legislation that incentivises and encourages people rather than penalising them.”


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Cider Drinker

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8:34 AM, 21st August 2024, About 2 months ago

I haven’t, as yet, seen a Bill proposing a new Law for 2030. I’m sure that Labour will try to impose something that’s not achievable but until it passes into Law, we don’t know for certain what will be required.

I hope that the blatant unfairness of a new minimum EPC Rating targeting only the private rental sector will be moderated as the Bill winds its way through Parliament. The previous Bill made provision for Social Housing and owner-occupied (mortgaged) housing to meet the new standard

Reluctant Landlord

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11:03 AM, 21st August 2024, About 2 months ago

I am not even bothered worrying about this at this stage. As Cider says, it's just hot air at the mo. First thing they need to look at is the EPC itself as its a complete mess.

As and when I get voids I will look to see if there are any small/cheap things I can do like bit more loft insulation, but I am certainly not planning anything more. If you have no idea how the EPC is worked out, you don't have any idea what to do for the best, so what's the point?

The way it's going there are going to be less 'real rental' properties to let in the PRS by the time 2030 comes along, (and by that I mean actual family houses as opposed to the single space eco coffins/flats that the B2R crowd have built) so I can't see ANY government wanting to make supply even worse.

Afterall, this will directly impact on the so called 'working people' that Labour keep banging on about and that apparently voted for them....

Elias Neocleous

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11:55 AM, 21st August 2024, About 2 months ago

If the EPC's are for the the saviour of this planet why is it that those who rent that should live in energy efficient homes?

John Grefe

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13:15 PM, 21st August 2024, About 2 months ago

Reply to the comment left by Cider Drinker at 21/08/2024 - 08:34
We have been here before??

Jason

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14:19 PM, 21st August 2024, About 2 months ago

Yep fit a heat pump and the EPC gets worse.

Cider Drinker

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9:28 AM, 22nd August 2024, About 2 months ago

I have a property that has an EPC Rating C. It’s heated by gas central heating with a modern gas Combi boiler.
It also had an electric fire for use in emergencies and to serve as a focal point on the chimney breast. This dropped the EPC to a D rating so I binned it. Now, if the boiler fails, the tenants freeze.
Great system!

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