EPC – Improvement advice for 2025 please?

EPC – Improvement advice for 2025 please?

12:00 PM, 19th January 2022, About 2 years ago 59

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We are a company just starting our adventure into the BTL market – we own 1 property and are nearing completion on the second in the North East. This property is well into Level E of the EPC and I’m looking at options we can do during renovation to up the level getting ready for 2025.

One of the items I’m wanting to investigate is solar PV which seems to gain a lot of points, the other is thermal cladding – but being an end of terrace house, cladding seems to be very expensive. On the other hand, Solar PV (based on websites) seems to be doable if we can increase the rent from £500 to £550

In a discussion with our agent about this, his advice was to forget about this at present as:
* The legislation is still under discussion and will only apply to housing associations from 2025
* He expects the points basis will change as it did when level E was introduced – “suddenly all brick house complied with level E”
*The government, despite killing Green Homes, will make funding available for all house owners

Am I worrying unduly about this proposed legislative change?

Thanks in advance

Mike


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Comments

Reluctant Landlord

10:02 AM, 20th January 2022, About 2 years ago

Reply to the comment left by Rob Crawford at 19/01/2022 - 12:45
my experience - new renovation with all singing dancing top of the range electric boiler, TRV's etc EPC D. Flat immediately underneath same footprint etc but using the existing gas boiler in situ - EPC C.

Really bloody frustrating.

Reluctant Landlord

13:03 PM, 20th January 2022, About 2 years ago

Reply to the comment left by Seething Landlord at 19/01/2022 - 13:27
you might be able to get an exemption if cost and return is outweighed when it comes to it. If you cant do any quick wins now, hold fire. IF you can get a grant for the bigger items like SP later on then great, if not the market should be flooded with demand at some point as everyone had to upgrade the EPC, so the SP might be cheaper if you bought then rather than now?

Seething Landlord

15:06 PM, 20th January 2022, About 2 years ago

Reply to the comment left by DSR at 20/01/2022 - 13:03
Cost limit proposed in the consultation that finished in January 2021 was £10,000 if I remember correctly but that could change and until we have the Government response AND know how the EPC criteria will be changed to accommodate their policy to phase out gas boilers, the change in fossil fuel pricing, environmental impact etc I will not be making any decisions other than to wait and see.

Gunga Din

18:56 PM, 20th January 2022, About 2 years ago

" TRVs on ALL rads + room thermostat + timer"

What would the system do if the CH was fired up and all TRVs were shut? Depends on the boiler safety logic I suppose....

reader

7:33 AM, 22nd January 2022, About 2 years ago

Yes that is lots of practical and sound advice. Just one caveat the EPC calculation program has changed a few times over the years affecting the ultimate grading so whatever is good advice now might change under any new legislation. Secondly, build a very good working relationship with your EPC assessor also ask them to carryout an initial assessment of potential enhancements and do a cost benefit calculation.

Ian CB

7:36 AM, 22nd January 2022, About 2 years ago

There are significant numbers of properties in some parts of the country that are currently below EPC-C largely due to the method of construction (typically solid brick or stone walls). Without significant changes to the EPC rating system, an exception in the requirement for this type of property, massive grants (and potentially a relaxation of planning rules to allow external cladding) these properties become un-rentable - so large numbers of former renters are on the streets with houses empty and rotting.

Accommod8

9:40 AM, 22nd January 2022, About 2 years ago

Be careful with external insulation. Render is usually wafer thin in areas like gable end of a street inviting vandalism by puncturing into the insulation or accidental damage, and any shady areas not getting sun will usually take on a grey/green mouldy appearance after just a couple of years. Just look at some low value areas with housing association dwellings. Many have been done.
As regards EPC assessments, get a small sample of e.g 300mm loft insulation out on the landing before they arrive, or ask them if they want to use the ladder you have already put in place ( I don't use agents). I once got an unexpected C from E when I facilitated everything in preparation, including payment. There was no influencing, just being organised. I stayed out of the way- but rightly or wrongly it may have an effect which is likely to be favourable in a marginal situation. I am aware many people have property well away from them, but maybe your tenant can help.
You could also presumably get a second EPC assessment if dissatisfied with the first. I have paid £50 to £70 approx.
I think internal insulation to a cold wall room where the weather and prevailing winds tends to hit, despite the practicalities of covings and other details being problematic, might well make the difference, and perhaps demonstrate to the assessor that you take the matter seriously. You can buy a P.I.R. insulated plasterboard these days, albeit expensive. Going straight to the insulation wholesaler is what I have done previously to save maybe 25%.

Martin

15:42 PM, 22nd January 2022, About 2 years ago

I understand the stumbling block is that any new legislation will bring new tenancies to a C rating and they will include Council and HA properties. I know several in such properties and they are F & G, so it may not happen, due to costs. I know of one location where 2 Semi-detached houses, one HA (F) and private rented (D), but in April 2025 one becomes un-rentable if they do not align the rules.

Chris Byways

19:03 PM, 22nd January 2022, About 2 years ago

Reply to the comment left by DSR at 20/01/2022 - 10:02
Yes confusing, but in years past gas was lower carbon than coal generated electricity. Not now. Wind is greener than a modern gas boiler. Yet MORE EXPENSIVE.

So there SHOULD be a change in EPC bias towards electric.

But, I feel it’s a dark art. “Electric Boiler”. “dynamic 40mm clay core” What’s that? Water filled rads, or electric rads and a stored water electric heater? All electric heating is 100% efficient. But night storage can lose some whilst empty, pipes run in voids waste heat. Etc....

One flat has 2 x 22kWh night heaters. At 15.3p kWh. Or 20.3 day rate. So depending on tenants work pattern, full rate is likely to be far cheaper. If I put a gas boiler in it’s 3.8p kWh. (Octopus charges January 22 https://share.octopus.energy/dusky-boar-82 ).
Would gas give me a better or worse EPC ? - now D, but possibly C if re evaluated due to other improvements.

So for now, I plan to do nothing here or other properties, some of which have quite bizarre EPC ratings.

Badger

10:44 AM, 23rd January 2022, About 2 years ago

Reply to the comment left by Accommod8 at 22/01/2022 - 09:40
"Going straight to the insulation wholesaler is what I have done..."

Could you name who you use please?

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