Landlords warn that energy efficiency plans are ‘dead in the water’

Reply to the comment left by Christopher Rattew at 10/01/2023 - 11:10
My understanding is "If after the work the asset simply does the same job as before, then it is a pointer that the work is a repair." (See BIM 46950). Given that the work to meet EPC requirements is to enable the property to continue to do what it did before, then it should be argued that this can be deducted from revenue, although I believe that a choice to class it as capital expenditure could be allowed; this may help if you are soon to sell and the sale would move you into a higher tax rate. I am not an accountant, so get expert advice.

Nice of the NRLA to join the push for publication of the review of EPC standards and updated MEES requirements.

Since August 2021, iHowz, have been writing to BEIS, DLUHC and Alok (COP26) Sharma asking for these to be published and have also highlighted the lack of published standards and deadlines to parliamentary committees and civil servants.
https://ihowz.uk/the-anticipated-standards-for-the-minimum-energy-efficiency-standards-mees/

Being charitable, part of the delay may be due to them hoping new technologies, such as Hydrogen, would come available earlier.

However, it is more likely simply yet another example of the dither and delay we have seen from this government. Spare a thought for commercial landlords who have to get their properties to a MEES of B by 2030 - regardless of tenant usage.

The key issues are:
- the current EPC SAP focusses on energy costs
- the new EPC SAP is expected to focus on carbon reduction
- the deadlines in the consultation are now completely unrealistic

Landlords concerns are
- works carried out under the current EPC requirements favour gas
- the new standard is expected to favour electricity (especially if the government break the link between the price of electricity and that of gas).

There is speculation that the government are considering breaking the requirements into two phases, EPC of D with higher MEES of C at a later date.

Yes, we'd like financial support to help, but without knowing WHAT IS REQUIRED AND WHEN, the proposals in the consultation are unachievable, given we have less than 2 years to implement them.

Reply to the comment left by Rod at 10/01/2023 - 12:46
Perhaps we should take the view that the proposals are just proposals which will be modified to take account of the issues identified by the consultation and all that has happened since.

What is seen as delay may simply reflect the fact that there are conflicting priorities and an appreciation of the need to avoid unintended adverse consequences.

Reply to the comment left by Seething Landlord at 10/01/2023 - 13:31
I think that is what we are all hoping for at the barest minimum!

Reply to the comment left by DSR at 10/01/2023 - 14:01
No harm in hoping!

Reply to the comment left by TheMaluka at 10/01/2023 - 10:37
my play on the pun for Legs it! could not be more appropriate!

The New EPC regs will be absurd. Because EPC software takes no account of all electric flats being lower carbon footprint because half of our electricity is now generated from renewables.
Most gas heated flats have a better EPC rating yet higher CO2 output 🤔
EPC software was designed purely to look at running cost & unless reprogrammed to allow for this is the wrong tool to assess carbon footprint.
I wrote to my MP about this who then wrote to Lord Callanan who didn't answer my question. He just replied with a generic letter overlooking this fundamental flaw in EPC software.
Yet it's part of the aim towards net zero.
Ground floor flats in many cases will need floors dug up & insulated underneath at vast expense to achieve band C.
I'm selling one flat a year as I retire. So I'm having to sell ground floor one's first basing my strategy on flawed legislation that may or may not happen that will cost landlords a fortune that's based on flawed reasoning from a government driven by net zero zealotry based on global warming which we don't even know for sure is man made.
Meantime China & India keep building coal fired power stations and expanding their already huge populations 🤔🙄

Reply to the comment left by Robin Pearce at 11/01/2023 - 04:34
This is generally not the case yet, because we are burning some gas to produce electricity most of the time. If you switch from gas to electrical heating, more gas will be burnt and there will be more CO2 emissions. The amount of electricity produced without fossil fuels will not change much, as it operates at full capacity nearly all the time. Once we get to the point where fossil fuels are burnt for electricity on just a few days per year, you will be correct. In a building we have with 11 flats, I did accurate energy calculations on refurbishment while sizing radiators. The most efficient had the worst EPC rating and the least efficient the best. EPCs are a tick-box exercise rather rather a proper assessment.

Reply to the comment left by Christopher Rattew at 11/01/2023 - 09:47
"This is generally not the case yet, because we are burning some gas to produce electricity most of the time."
This doesn't change the fact that as I mentioned, roughly half of our electricity comes from renewables. The gas generated electricity you mention falls into the other half. So it what I say still stands.

Reply to the comment left by Robin Pearce at 11/01/2023 - 04:34
Robin
Your comments highlight why we need the new Standard Assessment Procedure (SAP) methodology, which underpins the Energy Performance Certificate (EPC) to be published as soon as possible.

The current methodology is cost based and we need to understand what the balance of costs and carbon emissions will be in the future.

You make an interesting point, regarding your (presumably concrete) ground floor flats. There are two issues here:
1. The works you highlight would likely be exempt, as they would not be permitted under most leases.
2. What consideration will the new methodology give to embodied carbon in the existing floor vs carbon savings from improved insulation?

Today, estate agents, Wiinkworth, reported that their country offices are seeing owners downsize to save on energy costs. This matches the trend in the rental market.

The simplest way to reduce carbon is to use less energy, yet the government chose to do nothing to promote retrofit measures over the summer and will be subsidising fuel bills for the next year.