EPC’s are changing – apparently?

Hi, just read a new article on the NRLA website. This one seems to come out of the blue to me. Never heard of it until now. Is anyone else none the wiser? Not heard about any consultation or anything yet this looks a done deal!

Thoughts everyone?

EPCs are changing: what does this mean for you?
The new Home Energy Model is set to replace the Energy Performance Certificate (EPC) next year.

In this article first published in NRLA magazine Property, James Kent, the NRLA’s chief innovation officer and founder of property compliance platform Safe2, explains what this means.

New changes to the way the energy efficiency of homes is calculated could see costs skyrocket for landlords. Homes will need to undergo a series of extra checks as part of the new system, with the additional time it will take assessors to carry out the work expected to be reflected in higher bills.

Costs and the time taken to carry out an inspection vary depending on the size and type of building, but bills are typically around £65 for an average three-bedroom property, with the inspection taking around 30–40 minutes to complete.

Currently, homes are rated using something called a Standard Assessment Procedure (SAP), which sees properties given a points score that translates as an EPC rating ranked from A (extremely energy efficient) to G (extremely inefficient). The replacement Home Energy Model will use a new Future Homes Standard assessment, which will see assessors:

Measure all windows at the property, rather than relying on assumptions based on age
Carry out additional assessment of rooms in the roof
Introduce a new age band for properties built from 2023 onwards
Take into account the use of power diverters and battery storage, used in conjunction with solar panel
Recommend the use of heat pumps more frequently.
Why are the changes being made?

Prime Minister Rishi Sunak announced earlier this year that he was abandoning plans to introduce a minimum
EPC rating of C in all rental properties by 2028; however, net zero ambitions remain, with a Government target date of 2050.

Energy performance is, at present, based on the efficiency of heating a building using gas, as this has been the cheapest and the
most effective form of heating.

Consequently, when landlords have made improvements to their properties by moving them to electrical heating
systems via a heat pump, they have seen their EPC score fall.

As a result, ministers want to change the framework by which energy efficiency is calculated to focus instead on carbon emissions, with the new, more in-depth assessments also expected to give a more accurate picture of energy efficiency.

The assessments will also provide information as to what improvement work is possible given the age and type of
property in question.

What does this mean for existing EPCs?

The Government is currently consulting on the Home Energy Model, although assessors have confirmed they are already training in the new system.

Under proposals outlined in the consultation document, the new system would be introduced in April next year; however, it has yet to say what will happen to existing EPCs, which currently have a 10-year lifespan.

It is possible that they could be allowed to remain in place until the next assessment is
due, although this has yet to be confirmed.

What does the NRLA think?

The NRLA backs the overall principles of plans to decarbonise heating and is pleased a new system, less reliant on assumptions, is likely to be more accurate.

However, it does have concerns about the increased time it will take to carry out inspections, and the knock-on impact on landlords’ costs – at a time when landlords are under more financial pressure than ever.

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