Landlords face an uphill battle to meet Labour’s 2030 EPC target – it should be 2042!

Landlords face an uphill battle to meet Labour’s 2030 EPC target – it should be 2042!

10:42 AM, 12th August 2024, About 2 days ago 13

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Landlords face an uphill battle to meet the Labour government’s 2030 target of all privately rented homes achieving an EPC rating of A-C, research reveals.

The data from Hamptons shows that if energy efficiency improvements continue at the current rate, it will take until 2042 for all rented homes to reach the desired standard – that’s 12 years beyond the proposed deadline.

This represents progress compared to the 89 years it would have taken at 2016 rates, partly due to landlords preparing for previous, now-scrapped, Conservative EPC plans.

To hit the 2030 goal, around 340,000 rented homes would need to improve their EPC rating to C or higher each year until then.

That’s triple the number of homes set to achieve this level in 2024.

‘Proposed energy efficiency rules’

Aneisha Beveridge, the head of research at Hamptons, said: “Successive changes to proposed energy efficiency rules have shifted the goalposts for landlords, some of whom face costs which can run into tens of thousands of pounds.

“Despite this, many investors have continued to improve the energy efficiency of their rental homes and we’re currently on track to see 100% of rental homes where an EPC A-C is viable, reach that rating within a generation.”

She adds: “To meet the government’s 2030 target, the same number of homes will need to see energy upgrades over the next five years as we’ve seen make improvements in the last 30 years.

“While a requirement for all rental homes to achieve an EPC A-C rating by 2030 is achievable at a stretch, landlords need adequate time and resources to meet it.

“It is essential landlords receive complete clarity on this target this year.”

55% of rented homes have an EPC rating of C

While 55% of privately rented properties now have an EPC rating of C or better, surpassing the 48% rate for owner-occupied homes, there are still challenges.

Half of homes previously rated D achieved at least a C rating upon reassessment this year, but just 9% of C-rated homes moved up to B or above.

Data suggests 3-4% of rented homes may be unable to reach an A-C rating, a figure that was previously higher due to changes in EPC methodology.

Hamptons says these properties are often older, cheaper, and located in the North of England, with higher rental yields.

The average tenant saving when upgrading a home from EPC D to C is £499 per year, a 76% increase since 2019.

For EPC E homes, the saving is £1,248.


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Cider Drinker

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20:16 PM, 12th August 2024, About 2 days ago

Reply to the comment left by northern landlord at 12/08/2024 - 14:31
Tenants are not my only source of income. I’d be just as happy to have the money in cash ISAs earning 4%. If it’s a good year I might scrape 3-4% through letting property. In a bad year (like this one) I might lose 10%.

I just know I’ll never let to tenants again. If the properties become vacant I’ll switch to holiday lets or sell up.

Nick Aston

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21:42 PM, 12th August 2024, About 2 days ago

Reply to the comment left by Cider Drinker at 12/08/2024 - 09:34
Oh so the Tory plan was so much better.

Ben Grillet

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14:25 PM, 13th August 2024, About A day ago

I have yet to see any suggestion, either currently, or in any proposed changes, that makes allowances for properties run entirely on green electricity from, for example, Octopus Energy. Surely this in itself should exempt such properties from the requirement to upgrade the property, or should grant it an automatic A rating, as it would not be responsible for any CO² emissions? Clearly this would require some form of legal commitment to continue to use 100% green energy suppliers.
If the objection to that idea is that the tenant might be lumped with high heating bills in an inefficient property, then a stipulation for this exemption could be that the landlord is responsible for all the energy bills (as is the case with most short holiday lets), or a significant proportion of them, as an incentive to keep the property reasonably efficient.
This option would make the whole scheme immediately quicker, simpler and fairer - especially to those decent landlords who may be heavily reliant on the income from just one or two properties. I am in the business of property maintenance and know of a retired couple who have already spent their life savings investing in, and improving, an old cottage as a holiday let property, and simply do not have the available budget to further upgrade an old solid flint & brick cottage even to grade D, let alone C. But the only energy source is green electricity!

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