EPC improvement delays could cost renters £1 billion

EPC improvement delays could cost renters £1 billion

10:49 AM, 4th April 2023, About 11 months ago 5

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An organisation has warned that delays to boosting energy efficiency standards could cost private renters £1 billion in energy bills.

The Energy and Climate Intelligence Unit has reported that because of poorer energy efficiency in the PRS, homes are likely to use more energy and cost more than similar homes in other sectors.

The organisation revealed one in four households (23%) in the PRS are classed as ‘non-decent’ which is double that of the owner occupier and socially rented sectors.

Excess cold in PRS cost the NHS £1.2 billion a year

Though the plans have not been made into law, the government has previously proposed that by April 2025, newly rented properties in England and Wales will need to meet a minimum EPC standard of C – tougher than the current E standard.

The regulation is also slated to apply to existing tenancies from 2028.

An analysis from the Department of Health revealed that while excess cold in privately rented homes costs the NHS £1.2bn a year, the NHS saves 42p for every £1 spent on ‘keeping homes warm’.

Jess Ralston, an energy analyst at the Energy and Climate Intelligence Unit, said: “Encouraging private landlords to invest in their properties will lift local economies while saving the NHS millions.

“Privately rented homes are often cold, unhealthy and are likely to cost the billpayer and taxpayer billions because of their poor insulation.”

1.6 million children are living in privately rented homes that are cold or damp

Research from Cambridge Econometrics revealed that for every £1 invested in energy efficiency by Government, £3.20 is returned in GDP.

Ms Ralston added: “Questions are being asked about why something as simple as confirming a new standard is taking this long, when it could save households cash and generate growth at a time when UK growth is at best sluggish.

“The Government will certainly be under pressure from landlords and tenants alike as they seek clarity.”

A recent Citizen’s Advice report found that 1.6 million children are living in privately rented homes that are cold, damp or have significant mould.

According to the survey, more than half (58%) of private renters in England are struggling with either damp, mould or excessive cold or a combination of these issues.

The survey also found that 30% of renters can’t afford to heat their home to a comfortable temperature – increasing to 45% of disabled tenants.


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Comments

Reluctant Landlord

11:51 AM, 4th April 2023, About 11 months ago

the key sentence in this is...'Encouraging private landlords to invest in their properties...'

With no government plan other than obliteration of the PRS, there is no incentive at the moment for existing LL's to do anything except leave!

I would happily invest if I knew it was economically beneficial. At present I have no clue what to do for the best. Its realistic that tents will increase as a result so a difficult balance to be had her. I could spend £10k getting a C now (the EPC system itself floored so what is it to be achieved exactly by getting a C and how is this assessed??), knowing full well that the tenant cant afford any rent increase of even £20-30 a month to pay for it.

Suggesting tenants 'can save money' is taking the mick and simply feeding the PR frenzy machine that all LL';s are evil an wont do anything for their tenants). Most of mine cant afford to put the heating on as it is so no savings will be made. Standing charge is what the highest percentage of what their bill consists of.
What is the point for anyone?

Seething Landlord

12:19 PM, 4th April 2023, About 11 months ago

I take all these statistics with a pinch of salt. Just the other day I had a discussion with one of our tenants in a D rated terraced house who says that it is the warmest home that he has ever had, they never need to use the storage heaters and rely on a small electric heater that they switch on very occasionally.

The property has underfloor and more than adequate loft insulation, also benefits from borrowed heat from the adjoining properties and guess what, the EPC recommended underfloor (already there) and party wall (counter productive and only of benefit to the neighbours) insulation.

Paul Essex

12:31 PM, 5th April 2023, About 11 months ago

Of course the headline should be delays SAVE tenants billions as rents will rise to cover the expense; and as most costs vastly out weigh any nominal energy savings then financially they are set to lose overall.

Dickie Withers

12:10 PM, 7th April 2023, About 11 months ago

The EPC may be changed so improvements made now may become obsolete. LLLs have not been given actual concrete advice on what to do to improve their buildings. As for the delays costing renters extra money they could quite easily be homeless

Mick Roberts

8:10 AM, 8th April 2023, About 11 months ago

I'll keep repeating this, as applies to many attacks on us lately.

It's still not happening.

They/we not gonna' be able to retrofit these 1920 houses while tenant is living there & on the cheap rents a lot of tenants are paying.

Govt has to stop penalising tenants AFTER they’ve moved into their home.

Who’s paying for this then?
Cause if tenants are paying cheap rent ie. Landlord looking after em, & then maybe £5000 or £30,000 to upgrade from E to a C, Landlord then says I can no longer look after u with cheap rent. Cheap rent doesn’t pay for these outgoings, I’ve now got to charge u what the Landlord is charging his better off tenants up the road who’s paying more to live in that New build.

I’ve got to start telling tenants soon You can’t live here past 2028 anyway, Govt say u can’t if EPC not a C. And your rent doesn’t pay for a C.

Has anyone asked the tenants what they want? We know they want the better house, but when u give them choice I can give u New build for £1000pm or EPC C for £900pm, or still decent house EPC D but not New build standards for £700pm or £550pm I know what all my tenants say.

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