Majority of homes can achieve EPC targets without breaking the bank

Majority of homes can achieve EPC targets without breaking the bank

0:02 AM, 28th June 2024, About 3 days ago 15

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Mortgaged properties with low energy efficiency ratings can achieve EPC C targets easily, according to new data.

Technology company Kamma says despite scaremongering four out of five inefficient mortgaged homes can easily achieve EPC C.

The Prime Minister announced plans last year to scrap EPC requirements for landlords. The legislation would have required landlords to ensure their rental properties had a minimum EPC rating of C.

84% of residential properties can achieve an EPC C rating

Kamma analysed 200,000 mortgaged homes that are currently below an EPC C standard, to assess the cost needed to achieve EPC C against the value of the property.

The analysis reveals the vast majority (84%) of residential properties can achieve a minimum EPC C rating through energy efficiency improvements costing less than 5% of the property value.

This leaves only 16.5% of homeowners with a less affordable route to EPC C.

More than half of the 83.5% could achieve EPC C at a retrofit cost of less than £5,000, and 18% of properties would require under £750 in energy efficiency improvements.

Holding back progress

Orla Shields, chief executive of Kamma, explains: “Out-of-date retrofit cost estimates are holding back progress across the whole property industry.

“Most lenders and homeowners rely on retrofit recommendations, installation cost estimates, and energy bill saving estimates from the property’s EPC certificate, but EPCs use cost baselines that are over a decade out of date.

“Better data on property carbon emissions overcomes the perceived cost barrier, increases action and unlocks the benefits of retrofit for homeowners and lenders alike.”

Insulating homes reduces bills

The technology company explains these findings counter “the scare narrative” that making energy efficiency improvements to a property can cost thousands of pounds.

Ms Shields adds homeowners and mortgage lenders will both benefit from improved energy efficiency.

Ms Shields said: “Kamma’s findings run counter to the standard scare narrative that home retrofit is prohibitively expensive for the majority of UK homes.

“These inaccurate estimates have continually put off homeowners, slowing down the pace of retrofits and property decarbonisation.

“It’s not just homeowners that stand to benefit from retrofitting. Insulating homes reduces bills and insulates lenders from the increased risks associated with lending on under-performing homes.

“Changing regulations and changing buyer preferences both provide good reasons to act. With better data, better choices can be made.”


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Comments

Cider Drinker

9:04 AM, 28th June 2024, About 2 days ago

If it’s so cheap, why don’t the government fund it, and provide a lifetime guarantee that the insulation measures are correctly fitted and that they will not cause the house to suffer from damp - regardless of the tenants’ lifestyle choices.

Christopher Shaw

9:58 AM, 28th June 2024, About 2 days ago

Please give some examples & costings of improvements that can be easily made.

DGM

10:03 AM, 28th June 2024, About 2 days ago

What a load of twaddle, the EPC in its current form is not fit for purpose.
I have 2 properties that were a C and when the EPC was renewed are now a D, one even had double glazing fitted before the new EPC inspection, how can that be?
When I questioned on one property it had 30 year old brick filled storage heaters that don't work, I replaced them with the latest energy efficient electric heating (Cat5) and this gave me the C result, he said if you left one storage heater and changed after I left it would be a C. That proves this current EPC is not fit for purpose.
I have one Victorian detached house that the best I could get is a D, cannot put external insulation as in conservation area and has ornate brickwork, so this is going up for sale.

GARY RIVETT

10:06 AM, 28th June 2024, About 2 days ago

Reply to the comment left by Cider Drinker at 28/06/2024 - 09:04
Yes exactly, I am facing a minimum cost of £6k for each of my 3 properties which have a low D rating, and well above £15k for a property that has a low E rating. This particular property has no gas supply so will most probably require solar panels and an Air Source Heat Pump to comfortably obtain a C rating, so several years of profit to get there, making it better just to sell the property, which is probably why the tories abandoned the policy. But Labour does not seem to have the foresight, intelligence or either for this in their war against landlords.

Cider Drinker

10:08 AM, 28th June 2024, About 2 days ago

It’s absolutely right that property value should be built into any legislation requiring EPC improvements.
There’s little value in spending £5,000+ on properties worth less than £100k or those that may have a lifespan on just a decade or two. The costs need to be recovered through higher rents and this cancels out any likely savings in energy costs.
Besides, as the U.K. strives towards evermore renewable energy, we don’t need to make our homes into sweat boxes.
What difference does it make if my roof has solar PV or if the energy supplied to my home comes from renewable sources?

Lawrie Madden

10:25 AM, 28th June 2024, About 2 days ago

I think many landlords would be interested in the specifics rather than generalising about EPC
Examples and costings would give credibility to this

Shaun Hales

10:28 AM, 28th June 2024, About 2 days ago

5% of the uk average house (£282k) being £14,000. How is an average house rental ever going to produce enough to pay that when it costs a gross years profit?
Most of my epc reports say the opposite, that even with solar panels they won’t make a C so I’m inclined to believe the assessor that’s actually been to my properties.

TheMaluka

10:30 AM, 28th June 2024, About 2 days ago

Plenty of words with zero evidence.

Mick Roberts

12:32 PM, 28th June 2024, About 2 days ago

Reply to the comment left by Cider Drinker at 28/06/2024 - 09:04
Well said Cider,
I was discussing that this morning with tenant of 15 years who din't want ote doing.
I tell em we have no choice, but I'm on your side cause the Govt pay Cowboys to do these crap jobs, then leave us with the damp & condensation in 5+ years time.

Helen

13:42 PM, 28th June 2024, About 2 days ago

Yes it's rubbish. Until late 2022 I was renting out 7 Victorian and one 1920's flat in London. All EPC D or E, despite new roofs on the top floor ones with upgraded insulation, double glazing and new boilers. Even if they could reach a C costing £5,000 each I don't have £40,000 to spare and where would the tenants go while the work is being done? I have now sold 4 with another one under offer. Incidentally a new EPC on a 31sqm flat actually got a C last week! The assessor said it is because the boiler is too powerful for such a small flat. Surely that isn't an efficient use of energy! The back door and window aren't even double glazed in that flat. I have another 31sqm one which is fully double glazed and also with a fairly new boiler, which only got a D rating. It's so arbitrary and I've had enough of the stress and expenses which are eating into the non existent profits!

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