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0:01 AM, 30th June 2023, About 10 months ago 4
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Landlords and homeowners are facing steep costs to upgrade their properties to meet potential Energy Performance Certificate (EPC) ratings – with an average price tag of £13,981.
According to mortgage data firm Dashly, homeowners in Greater London will feel even more of a financial pinch with an average cost of £14,589 to make the necessary enhancements to their properties.
Currently, the typical UK home sits in band D, equivalent to 66 points on the EPC scale.
Research reveals that Greater London has some serious work to do since the average London property emits 4.07 of CO2 and has an EPC rating of 62 points.
With appropriate improvements, these figures could be slashed to 2.04 of CO2, corresponding to 80 points and a band C EPC rating.
Dashly’s chief operating officer, Martin Leonard, said: “We all need to step up and do our bit for the environment, but making these adjustments to your home can be costly.
“The mortgage industry needs to do its bit to ensure homeowners are aware of the existence and possibilities of green mortgages.
“Up until now, green mortgages have attracted very little attention, but cheaper borrowing rates in a difficult environment could help raise awareness of the benefits of energy efficient homes.”
He added: “EPC ratings have a role to play but the reality is that they mean very little to the average homeowner.
“People want to know how the rating impacts them in pounds and pence and what they can do about it.”
Meanwhile, Scotland is grappling with its own environmental challenges because properties currently have the highest EPC emissions in the UK, emitting 6.33 of CO2.
Consequently, they face the heftiest costs to reach proposed EPC targets with an estimated bill of £18,046.
The East and West Midlands boast the lowest EPC emissions at 3.49 of CO2.
And in the South West, homeowners have the lowest required expenditure of £13,565.
Meeting the proposed demands of energy efficiency is becoming a daunting task for landlords – and soon, homeowners.
That’s because landlords are looking at a potential deadline to reach a minimum EPC rating of C in 2028, and homeowners in 2035.
From adding cavity wall insulation to installing condensing boilers, these necessary changes come with hefty price tags, Dashly says.
However, the mortgage market is responding to this challenge, offering ‘green’ mortgages.
These financial products incentivise homeowners to make their properties more energy-efficient and offer perks such as lower borrowing rates.
Some green mortgage packages even provide funds to cover the costs of implementing energy-saving improvements.
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Can EPC rules regarding insulation be a retrograde step?
LaLo
10:26 AM, 30th June 2023, About 10 months ago
Come the time I’ve no doubt there will be lots of cowboys calling themselves builders jumping on the bandwagon with astronomical prices!
JB
11:05 AM, 30th June 2023, About 10 months ago
This article does express comparative quantaties of CO2 but does not give the units. I googled the average CO2 emissions per household in the Uk and it said 2.7 tonnes which is way below the figures given here. I've also seen emmissions expressed in kg per square metre. Whatever the units are, there are costly improvements to be made.
moneymanager
16:33 PM, 13th July 2023, About 10 months ago
The highest level of atmospheric pollutants emmenates from Westminster, if all our politicians went on permanent leave, the number of ills that would just evaporate would be astounding.
Reluctant Landlord
8:53 AM, 17th July 2023, About 10 months ago
article is misleading. Private homeowners will not legally be required to do anything at all to meet a C.
A homeowner MAY find a better mortgage/remortgage deal IF they were a C, but most will go for whatever the cheapest mortgage deal is. IF the homeowner sees a cheaper deal IF they uprate the EPC then fine, but most wont bother after doing to sums and working it out.