Landlords say government’s EPC C target by 2030 is ‘impossible’

Landlords say government’s EPC C target by 2030 is ‘impossible’

9:32 AM, 29th August 2024, About 4 months ago 42

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As the UK government pushes ahead with its plan to require all rental properties to achieve an EPC rating of C by 2030, a growing number of landlords are sounding the alarm.

According to a survey by Landwood Group, a staggering 95% of respondents believe the target is impossible to meet.

And, it says, it is seeing a surge in landlords wanting to auction their properties – these include single homes and large portfolios.

The firm of national chartered surveyors and auctioneers warns that the energy performance certificate proposals are unrealistic but could also damage the private rented sector (PRS).

With some of the oldest housing stock in Europe, the UK’s landlords face significant challenges in upgrading their properties to meet the new standard.

‘So-called ‘green’ initiative’

Mark Bailey, a partner at Landwood Group, said: “This so-called ‘green’ initiative might look good on paper, but it’s built on shaky foundations.

“The focus on improving modern social housing, overlooks the vast majority of Britain’s private rental properties which are ageing and would require significant, costly upgrades to meet the EPC C standard.”

He adds: “For many, achieving this rating is not just challenging; it’s nearly impossible without substantial financial investment.

“Previously, government subsidies helped with upgrades like heat pumps and insulation.

“Now, landlords have little choice but to sell or raise rents to cover these high costs.”

Landlords are forced out of the market

Mr Baily continued: “The consequences for renters are clear. As landlords are forced out of the market, tenants will face fewer housing options and higher rental prices.

“Energy efficiency is certainly important, especially in light of rising energy costs.

“But what use is energy efficiency if people can’t afford a place to live?”

He adds: “The government needs to address the housing crisis before imposing such stringent requirements.

“As it stands, this policy risks doing more harm than good.”


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StvD

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11:30 AM, 29th August 2024, About 4 months ago

If they really want it to have an effect on the countries efficiency it should apply to every house and building as a whole. Singling out the PRS is purely for votes, as we have no power to fight them. If it was every household there be too much backlash.

Ian Narbeth

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11:42 AM, 29th August 2024, About 4 months ago

The estimates given in EPCs for carrying out works are wildly under. Add a nought in some cases.
Moreover, many works require vacant possession. Even if they don't, internal insulation ruins cornices and architraves and involves complete re-decoration and lifting, trimming and re-laying carpets. None of this is taken into account by EPC assessors.
Once s21 goes, getting vacant possession to carry out work will be impossible. What can landlords do? Sell up or wait for massive (and, presumably, repeated) fines.

Cider Drinker

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12:06 PM, 29th August 2024, About 4 months ago

Reply to the comment left by StvD at 29/08/2024 - 11:30
Private landlords are considered wealthy enough to fund the ‘improvements’. In truth, I spent my cash reserves buying houses. Many social landlords were virtually gifted property by local councils.

Social landlords tend to own newer houses which have better EPC ratings by design. They off-loaded their least efficient housing stock to owner occupiers and private landlords.

What every government fails to understand (or chooses to ignore) is that it is private tenants that fund these ‘improvements’ through higher rents. The rent increase often outweighs the savings in energy costs. This isn’t important to the government; they just want us to use less energy so that they can build millions of new homes.

The average EPC Rating is D but, of course, not all properties have had an EPC assessment. Those that have not had the assessment include owner-occupied and social housing. All private rented properties should have been assessed (and should be rated E or better.

It would make more sense to raise all properties to D (including all social housing and owner-occupied homes).

northern landlord

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12:13 PM, 29th August 2024, About 4 months ago

When motor cars came along there was no legislation banning horses and carts or making them illegal after a certain date. Motor cars were obviously superior, nobody was upgrading horses and carts by fitting engines as it was not cost effective and horses and carts naturally died out.
Upgrading older cheaper properties (which are the backbone of the PRS) is a bit like trying to fit an engine to a horse and cart, it is basically not worth it, the landlord has to immediately stump up and the tenant will actually pay the bill over time, while saving a low amount on energy.
Far better to just make all new properties comply with the latest standards and let them slowly supplant the older properties, which they should if they are so much better.
Let the market dictate EPC ratings. If tenants won’t accept E and D ratings a landlord’s choice is clear upgrade to stay in the PRS or sell up. Of course EPC upgrade costs will be built into the rent. Would any sane tenant pay say £200 a month extra in rent just to save a few hundred a year? Home owners are not upgrading, as they know it is not cost effective.

JeggNegg

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12:20 PM, 29th August 2024, About 4 months ago

Reply to the comment left by Cider Drinker at 29/08/2024 - 07:56
I recall reading a comment made on property118.com probably over a year ago, which was from an EPC ASSESSOR who I think suggested a survey/report carried out by assessor’s still has not been read or actioned. I think there was reference to the data help on EPC computer was also out of date! Do we know if anything has been changed/ brought up to date?

I have been told that if I fit infra red heaters in an old lathe and plaster cottage I will get a lower Epc score than my 50 year old eco7 night storage heating.
Is that likely to be correct?

Cider Drinker

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12:47 PM, 29th August 2024, About 4 months ago

Reply to the comment left by JeggNegg at 29/08/2024 - 12:20
Night storage heaters are more economical than infra red heaters because they store cheap rate energy overnight. The grid has spare capacity at night so it makes some sense to harness this capacity.

The EPC system isn’t fit for purpose. Sure, it provides a guide to obvious improvements if the only aim is to reduce energy costs. Businesses don’t work like that. We need to do a cost/benefit analysis to determine where to invest our money. Spending £10k on an old property that was built to house poor workers in the early 1900s to save modern occupants £500 per year in energy bills - but adding £600 per year to their rent is bad business.

Ian Narbeth

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12:53 PM, 29th August 2024, About 4 months ago

Reply to the comment left by northern landlord at 29/08/2024 - 12:13
Excellent comment. Give the tenant the information and let them decide.
As others have noted, upgrading the property to a C may lead to damp and mould which can be mitigated if the tenant is prepared to spend more on heating and open the windows to ventilate the property!

Reluctant Landlord

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13:10 PM, 29th August 2024, About 4 months ago

Reply to the comment left by Ian Narbeth at 29/08/2024 - 11:42
or get an exemption based on the fact the tenant states they do not want the work carried out. This remains in place until that tenancy ends (or five years and if tenant remains you can reapply for exemption)

If the tenancy ends then by default it is vacant. Sell or update with the barest min to pass top get to a C or get an exemption if over the amount expected to pay (if this remains).

Other options holiday rental/short term lets or keep empty or lease to a social housing provider where the C does not need to be met as the tenancy is not direct with the tenant.

Cider Drinker

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13:33 PM, 29th August 2024, About 4 months ago

Over 90% of properties are rated D or better (ONS).

Owner occupied homes have the lowest average EPC rating.

Private rentals are less energy efficient than social housing because private rentals are generally older (and cheaper).

Interesting data can be found online. I particularly like this one from the ONS…

https://www.ons.gov.uk/peoplepopulationandcommunity/housing/articles/energyefficiencyofhousinginenglandandwales/2023#:~:text=The%20median%20energy%20efficiency%20score,)%2C%20the%20same%20as%20Wales.

Ian Narbeth

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13:51 PM, 29th August 2024, About 4 months ago

Reply to the comment left by Reluctant Landlord at 29/08/2024 - 13:10
I would be nervous about applying for such an exemption. Unless the system is very landlord friendly, unco-operative tenants won't be explicit about not allowing access, they just won't do so. What evidence will we need? Also, how quickly will Councils process requests for exemptions? It could be months and what if you don't get one? Massive fine and re-apply if the tenant still won't co-operate.

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