Government committee warns landlords don’t value EPCs

Energy Performance Certificates (EPCs) have become devalued by landlords and are not an effective tool for decarbonising homes, claims new report.

The Energy Security and Net Zero Committee (ESNZC) report reveals EPCs are deterring people from making the switch to low-carbon heating.

The report also reveals the UK is far off track for meeting its legally binding commitment to reach net zero by 2050.

EPCs have become devalued by landlords

Energy Secretary Ed Miliband has proposed all private rented properties will need to meet EPC C targets by 2030 and by 2028 for new tenancies.

Alongside this, the UK is legally committed to reaching net-zero greenhouse gas emissions by 2050, meaning emissions must be reduced as close to zero as possible.

However, a report by ESNZC suggests the country is far off track. The committee reveals, more than 29 million homes still need upgrades to meet net-zero targets, and argues that the current EPC system is not fit for purpose in supporting this transition.

Jonathan Bean, policy and parliament lead at Fuel Poverty Action, warned the committee that there is a “lack of clarity about EPCs and what they are for”, adding that consumers are “very muddled” about whether EPCs are about energy bills, the broader costs of home heating or carbon emissions.

The report also says many people, including tenants, do not pay attention to EPC ratings.

The report says: “The evidence that we received made clear that, over the years, EPCs have become devalued, especially by estate agents and landlords, and are of low concern when people are looking to improve their home or move house.”

Not an effective tool for decarbonising UK homes

The report warns that the current EPC system is failing to support the UK’s net-zero goals.

The report says: “We are deeply concerned that Energy Performance Certificates, as currently calibrated, provide some consumers with poorly conceived advice and have a strong bias against low carbon, but initially more expensive, heating systems.

“As a cost-based metric, Energy Performance Certificates are not, as they stand, an effective tool for decarbonising UK homes. To the contrary, they are deterring consumers from making the switch to low carbon heating.”

The ESNZC is calling for urgent reform of the EPC system, recommending a new metric that reflects both carbon emissions and energy costs.

The committee also wants EPCs to be used to recommend improvements, with households then directed to independent advice following an assessment.

The government has announced changes in the way EPCs are assessed. However, whilst landlord organisation iHowz has welcomed the change, it warns of a lack of information, particularly around Minimum Energy Efficiency Standards (MEES), and claims even the government realises the 2028 deadline for EPC C targets for new tenancies is unworkable.

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