Pressure builds for England’s landlords to meet EPC rules

Is it any wonder that landlords are not rushing to carry out EPC works when the Government has failed to publish their new requirements on EPCs and MEES, despite their consultation ending over 2 years ago and several letters from iHowz asking the procession of ministers at both DLUHC and BEIS?

https://ihowz.uk/the-anticipated-standards-for-the-minimum-energy-efficiency-standards-mees/

Given the lack of direction from government over the last 2 years, we are left with their preferred proposal of C by 2025 but no confirmation on dates, minimum standard or SAP weighting between carbon reduction and cost.

IHowz welcome the extension of the energy cap and additional support for the most vulnerable, but wonder why so little funding has been provided to reduce energy consumption through insulation and other retrofit measures.

no pressure as NOTHING is confirmed yet - the rating nor the date for compliance!

"The firm’s managing director, Jason Harris-Cohen, said: “There has been a lot of noise around ‘greening up’ the UK’s property stock, and despite multiple campaigns and press coverage, homeowners are woefully behind the Government’s target."

Yes, a lot of noise coming from people like Mr Harris-Cohen who spout but don't know their facts that this is not yet a legal requirement, and homeowners thus far are not affected. Suggest you stay quiet Mr Harris-Cohen.

As I said previously in another post I think the EPC is seriously flawed and open to abuse. They should also look at linking it to actual usage from smart meter readings.
I have been looking at the gov website for EPC's in a lot of roads and the ratings look wildly subjective. Some for the same house say cavity wall insulation then another updated one for the same house a few years later say no cavity wall insulation.
What's to stop you setting up as an EPC DEA after 3 days online training then carrying out work for your friends/family or even your own properties and submit it as an interested party?

The title of this thread should read "Private landlords to meet EPC rules", social landlords are exempt and this is something we should highlight when ever possible. Just saying!
In my humble opinion an EPC should only include physical changes to a property and not things like solar panels. You can have a poorly insulated house with a couple of solar panels and still get a good score.

Less than 10% of houses these days are rated as E (the current minimum standard for renting) most having been uprated to a D rating by changes made as part of natural property upkeep as time goes by such as new efficient boilers and controls, thermostatic radiator valves, replacement double glazed windows and doors and improved loft insulation. To make the jump from D to C could involve underfloor insulation, internal or external wall insulation and solar panels. All these improvements are expensive, estimates of typical upgrade costs do vary but £8,000 would seem to be typical. figure. Typical energy savings could be £500/yr after doing the upgrade, so a 16 year payback period. This is why home owners are not rushing to upgrade their properties, because it does not make economic sense. Tenants are in a similar boat to owner occupiers as landlords will seek to recover the upgrade costs from them. Commercial landlords can get exemption from laying out if the payback period is less than 7 years. So while this does not apply to domestic landlords, 7 years would not be a bad period to consider. Borrowing £8,000 over 7 years at 5% will cost £113/month. A London landlord with a £600,000 house renting at £2,500 month might just elect to absorb this but a landlord outside London with a £120,000 house being rented at £600 month will not be able to, it will be passed on. So if the tenant can actually afford an 18.8% increase without going into arrears and being evicted they might save £3,500 in energy over the 7 years but they will pay £9,492 in extra rent so, as for the owner occupier not a good deal for them either.

Reply to the comment left by northern landlord at 23/03/2023 - 17:12"estimates of typical upgrade costs do vary but £8,000 would seem to be typical. figure. Typical energy savings could be £500/yr after doing the upgrade, so a 16 year payback period"
Any and all energy savings are only at the benefit of the tenant - it actually means zero for the Landlord.
As I see it ANY upgrades that are enforced on me by the government in order for me to legally let the property, is a cost that HAS to be met by an increase in rent. Simple.
This is the same for gas certs, elec checks etc and even the EPC cert in the first place. These are all COSTS that will be factored into the ultimate determination of the rent.
The factors that also feed into determining the rent are the standard things like size of property location etc and current market rent.
Simplistically speaking if the costs tip this balance then either the LL ultimately takes a financial hit and chooses the long game, or gets out and sells up.
Most LL's are in it for the long game, but given what we all see coming down the pipeline this could further tip more over the line of getting out of the PRS. Ultimately this is a business decision afterall.

Time isnt running out, The EPC C rating hasnt been passed by government yet. As I wiil be selling a property when the tenant moved out it will only affect my existing tenancies, so I have until at least 2028 to up the EPC rating. All my properties are paid for and I have sold 12 so far (6 left). BTL at the moment is a mugs game, especially with the difficulty in getting anyone out if they don't pay, and the government will only introduce legislation that will make it worse. Don't delay, sell today should be the phrase to use.

Reply to the comment left by northern landlord at 23/03/2023 - 17:12
The chances of getting an E rated property (all electric property and heating) for anything less that £25k is next to nil (I have had quotes) and cant be done with the tenant in situ. Cheaper to pull the plug and sell it.

EPC's are a joke, I have several flats that are built significantly higher in design and insulation standards than regs of the time, but the program only allows to building regs of the time.

One of the flats has just had central heating and jumped to a C, however the running costs (the others are economy 7 wall heating) and are so much more cost effective!
Showing the epc is flawed
I really hate that we are held to a higher standard...scratch that, I hate that we are pinned atthe bad guys and yet most of the bad press / poor living conditions is from social and council housing!
I have a friend who just was forced to take a council house, it was at such a poor standard that we would not be able to let it out, Like the council would take action against a private LL if we dared!
I wonder if a petition might gain social and council tenants backing to force no new regs for private LL, until social nad Council houses are brought up to our current standards? Likely a pipe dream?