Labour’s EPC targets for landlords could spark ‘frenzy’

Labour’s EPC targets for landlords could spark ‘frenzy’

0:04 AM, 16th January 2025, About a month ago 6

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Labour’s energy performance certificate (EPC) targets for landlords will drive Britain’s property market into a ‘frenzy’ and worsen the housing shortage, experts have warned the Daily Telegraph.

The Government has launched a consultation to overhaul the controversial EPCs, while Energy Secretary Ed Miliband wants all rental properties to achieve a minimum EPC rating of C by 2030.

Proposals to favour homes with the ‘capacity to integrate with smart technology’, or green heating systems such as heat pumps, will leave landlords scrambling to renovate properties or sell up.

Driven many landlords out

Ryan Etchells of Together, a property management company, warned that the previous government’s measures had already driven many landlords out of the market.

He added that the UK has a severe shortage of tradespeople – a crisis the government has failed to address in its reforms.

Mr Etchells told the Telegraph: “It’s been like the hokey cokey over the last few years for landlords. But if we’re not careful it could become a frenzy.

“There simply won’t be enough tradespeople to make improvements.

“With this ticking EPC clock in the background, we’ve found a lot of landlords who were five years away from divesting their portfolios are bringing it forward.

“We could see an oversupply of ex-rentals on the market, which is the last thing anyone needs.”

Mr Etchells said: “Lower rated EPCs could become non-standard properties, and appetite for lenders to provide mortgages to them will become more niche.”

EPCs are unreliable

Mr Miliband has described it as a ‘Tory scandal’ that tenants were still ‘shivering in cold draughty homes’.

It has been often pointed out that EPCs in their current form are often unreliable, and that assessors are inconsistent.

A government spokesman said: “Everyone should live in a warm, safe home. Our plans for private and social rented homes to achieve energy performance certificate C or equivalent by 2030 will help deliver cheaper-to-heat homes while lifting up to one million households out of fuel poverty through the biggest potential boost to home energy standards in history. We will consult on these plans in due course.”


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Ian Narbeth

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10:40 AM, 16th January 2025, About a month ago

There are numerous problems with the requirement to achieve an EPC rating of C. These include:
1. Some properties cannot be upgraded except at disproportionate cost.
2. Many properties cannot be upgraded with a tenant in occupation.
3. Installing internal wall insulation will reduce in size already small rooms. Complete redecoration will be required.
4. The message from Government to landlords is: we will fine you heavily if you don't achieve a C rating, unless
5 possibly, there will be exemptions if the landlord tries but fails to achieve a C rating after spending an arbitrary sum - mooted at £10,000 per property.
6 Said arbitrary sum will not include cost of redecoration, loss of income whilst work done or the cost of re-housing tenants.
7 Because of the shortage of tradesmen, there will be delays in works starting and the cost of upgrade work will increase disproportionately. The arbitrary sum won't buy as much next year as this year.
8 Although landlords may be protected if a tenant refuses to allow access, nothing in the RRB or Government statements makes this clear.
9. If local authorities are to be charged with granting exemptions to landlords who cannot achieve a C rating, it will be low priority for them to help landlords out. Should landlords continue to rent out property with a D or E rating in the hope of an exemption? If, months after D-Day, they do not get an exemption the fine could exceed the income from letting. Will they be repeatedly fined?
10. No minister is saying to tenants: you must co-operate with your landlord and if you don't then you have only yourselves to blame and we will not punish your landlord.
11. Tenants will be evicted so that landlords can sell in order to avoid being fined. There will be fewer homes to rent leading to more homelessness etc., etc., etc. I am sure others can add to the list.
Solar panels (which are ALWAYS) listed on PC recommendations do not improve energy efficiency. A landlord could pocket the money from selling electricity.
If Milifool wants to lower bills and provide warm homes, how about being sympathetic to the problems landlords face? How about giving grants or tax incentives (e.g. double allowance for expenditure on improvements) instead of threat after threat after threat?

Cider Drinker

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10:41 AM, 16th January 2025, About a month ago

We have lots of poor quality property from an energy performance perspective. A disproportionate under of such homes are in the PRS. This is because they are often cheaper to buy.

Making them energy efficient is difficult, expensive and often bad news from a damp and mould perspective.

Adding solar PV and solar water heating to could be less damaging. Of course, Labour have promised net zero by 2030. If my energy is provided by a solar PV farm or from windmills, surely my home should be rated the same as one with solar PV. The source of energy is the same.

As it stands, it may cost £10k - £20k to achieve EPC Rating C and the annual savings are just a few hundred pounds. It’s as unlikely as it is unwise. The ongoing maintenance cost of the solar PV is likely to average out to be as big chunk of the so-called savings.

Then, we have the disparity in house prices between the South East and North East. My properties are worth around £100k each. £10k would wipe out 4 or 5 years profit. Perhaps it’s less of an issue for more expensive properties that command higher rents.

Peter Watson

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13:02 PM, 19th January 2025, About 4 weeks ago

Reply to the comment left by Ian Narbeth at 16/01/2025 - 10:40
I am hoping there will be a clause that states tenants in non EPC C rated properties have to leave the property on the very day the law is enforced.

They can't live there but I can't get rid if them!

GlanACC

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16:24 PM, 19th January 2025, About 4 weeks ago

No it won't, there won't be any frenzy .. Firstly the EPCs are being revised and that won't happen until at least 2027. By that time we should know the cap on spending for any upgrade mandated by the government.

Landlords will review this and the cost needed to upgrade and will decide whether to sell or upgrade.

Ian Narbeth

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18:23 PM, 19th January 2025, About 4 weeks ago

Reply to the comment left by Peter Watson at 19/01/2025 - 13:02
Don't hold your breath, Peter. There will never be such a clause. Landlords will have to defend themselves if the LA takes action. The tenants won't be required to leave. The best landlords can hope for is that the LA will leave them alone if it can be shown that the work cannot be done without vacant possession and that the tenant will not co-operate.

Ray Lancaster

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11:13 AM, 21st January 2025, About 4 weeks ago

I will be selling all of my properties apart from a few.
Hope the government realises the reason for tenant evictions will be down to them as I won’t be paying more money out

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