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 3 months ago 22

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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 3 months 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 3 months 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 3 months 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!

LincolnshireLandlord

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8:57 AM, 17th August 2024, About 3 months ago

Reply to the comment left by northern landlord at 12/08/2024 - 14:31
Where is the information about the RRF bill,and where can I find out how tenants can refuse works being carried out please.

3 Bed Investor

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2:36 AM, 29th September 2024, About 2 months ago

According to the Roofing Advisory Service in Edinburgh, Scotland, spray foam insulation could be unsuitable for mortgagability or insurance purposes. In other words avoid getting spray foam insulation done on your investment properties as you will need to pay to remove it again. AYE RIGHT! So Government of the day, CAN we or CAN'T we?
When will the Government actually know what they are doing? If we can WHERE do we go and WHO do we use? Who are your APPROVED installers?

GlanACC

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11:11 AM, 29th September 2024, About 2 months ago

I have already spoken to my tenants about the EPC upgrades I had a quote for removing and installing new loft insulation on a 3 bed semi I rent. The loft insulation is made of treated shredded plastic bottles - quote was for £4,500 .. not a chance

PH

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13:03 PM, 29th September 2024, About 2 months ago

Mine is an EPC C . Spending 15k + wouldn't even get it to a B which would include solar panels & wind turbines 😂. I know I don't need to do anything as it's a C but after 2030 what will be the next 'goal' ?

GlanACC

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18:03 PM, 29th September 2024, About 2 months ago

Reply to the comment left by PH at 29/09/2024 - 13:03
My next goal is already set, I am hoping the tenants will leave by 2030 so I can sell. As happens I do have 2 properties that are C, but will they still be in 2030 ? The government can't guarantee that existing C certificates will still be valid and might have to be re-assessed.

PH

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18:44 PM, 29th September 2024, About 2 months ago

All it will do is force thousands of good tenants out of perfectly good homes , all for the sake of a couple of points in a non-sensical system. The house I let out made a grade C by just 1 point. If it had failed by 1 point I would've sold it before renting it out as it wouldve cost thousands to get it even a point yet it is a perfectly good home , stays warm and weatherproof whilst not costing a fortune in the winter. The system doesn't work end of.

Mick Roberts

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5:45 AM, 2nd October 2024, About 2 months ago

Reply to the comment left by GlanACC at 29/09/2024 - 18:03
That's it Glan,
And PH says the same.
Govt Council's constantly changing the goalposts.
Thousands of Landlords spent £1000's getting to C increasing rents for thousands of tenants, thousands of tenants homeless cause Landlord petrified of what's next. The Govt scrap the C.
We now back to the C.
And is it gonna' be B?
Changing the system, is it all irrelevant?
It's the constant retrospective changes after we've already committed to giving the desperate tenant a home on the rules in force when they moved in. We get blame for asking them to go, when we all know it's the Govt & Council's that's forced the changes.

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