Landlords cancel EPC plans after government U-turn

Landlords cancel EPC plans after government U-turn

0:01 AM, 27th November 2023, About 5 months ago 12

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The UK government’s decision to scrap its plans to require energy performance certificates (EPC) for rental properties to have at least a C rating has led to a significant drop in landlords’ investment in energy efficiency measures, a new report reveals.

According to the Lloyds Banking Group, its Housing Stocktake 2023 report shares insights on the stalling efforts to decarbonise the UK’s housing stock, which accounts for 16% of the UK’s total carbon emissions.

The findings back up a report last week from Landbay which showed that 74% of landlords welcomed the EPC rethink – with many not interested in upgrading because there is no legal requirement to do so.

And a study from Foundation Home Loans revealed that a majority of landlords were optimistic about the future of the PRS after the government scrapped EPC requirements.

Landlords had either considered or had taken action

Now a report from Lloyds has found that more than eight in 10 (84%) landlords had either considered or had taken action to improve the energy efficiency of their properties in the last five years, including installing battery storage, solar panels or heat pumps. This was compared with just over a quarter (27%) of homeowners.

However, since the government’s U-turn on its EPC C plans, 42% of landlords have now cancelled plans to invest in energy efficiency measures.

And 53% of UK landlords say they are less likely to invest in energy efficient changes in the future.

The report also reveals that while nearly 57% homeowners think it’s important to make their property ‘net zero ready’ by 2035, more than two-thirds (69%) have not taken any action to make improvements in the last five years.

The main barrier for homeowners is cost, with just one in five (20%) homeowners able to pay for the steps needed to ensure their home is ‘net zero ready’.

Landlords and homeowners need more support

The Lloyds report suggests that both landlords and homeowners need more support from their bank or mortgage provider to get their home net-zero ready.

Seven in 10 (68%) homeowners and nine in 10 (87%) landlords want some form of support from their bank or mortgage provider, such as green mortgages, loans, grants or advice.

The report also shows that landlords demonstrate a much greater awareness of the ways to improve the energy efficiency of their rental properties than homeowners.

Rebecca Heaton, the director of environmental sustainability at Lloyds, said: “As the UK’s largest mortgage lender, we are concerned by the inadequate progress in decarbonising the UK’s 28 million homes.

“The UK has the oldest and draughtiest housing stock in Europe and progress is off track. The lack of progress in decarbonising our homes risks pushing critical net zero goals – and keeping global warming within the 1.5⁰C threshold – further out of reach.”


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Comments

Easy rider

8:57 AM, 27th November 2023, About 5 months ago

Housing accounts for 16% of the UK’s carbon emissions. So, that’s ALL of the U.K. and ALL properties.

How much difference would it make if ONLY the PRS was forced to meet a minimum EPC Rating C? Not much, I think.

The problem is that it costs far more to make the ‘improvements’ than occupants are likely to save in energy.

Most improvements are not carbon neutral (manufacture, delivers, salesmen, fitters etc.,).

The energy saving improvements can damage the property and/or increase mould caused by damp. Houses are supposed to breathe.

Besides, as we towards greener, renewable energy sources, surely the need to use less energy diminishes?

John MacAlevey

10:23 AM, 27th November 2023, About 5 months ago

I twigged this EPC upgrade effort would not work over a year ago, not enough technicians, civil servants, materials etc..another HMG wish-list fail. EPC`s are not regarded with much authority in the PRS, it`s just another thing to be aquired by law.

Grumpy Old Git

10:45 AM, 27th November 2023, About 5 months ago

It's all a load of bo**ocks! See here for an alternative view to the standard propaganda: https://dailysceptic.org/2023/11/26/three-graphs-that-show-there-is-no-climate-crisis/

Martin Hicks

10:47 AM, 27th November 2023, About 5 months ago

I cannot understand why the progress towards more energy efficiency in houses cannot be approached in a similar way to the clean air act in the 1950's. All properties should be required to achieve a set target regardless of who owns or occupies them. A national leaflet drop outlining the requirements and financial assistance available would be a good start.

Easy rider

11:03 AM, 27th November 2023, About 5 months ago

Reply to the comment left by John MacAlevey at 27/11/2023 - 10:23
I wrote to my MP to point out that it wouldn’t work, it wasn’t wanted and it was unfair on private landlords and their tenants.

It’s importantly, tenants would be evicted if landlords couldn’t afford to comply and the displaced tenants would seek social housing that potentially had a lower EPC Rating than the PRS property they were being evicted from.

I think it went straight over his head (that’s if he read it). The response was typical toeing the Party line nonsense that failed address a single point raised.

Chris Rattew

12:06 PM, 27th November 2023, About 5 months ago

We have done nothing to improve EPCs, as they are flawed, but we are taking steps to improve energy efficiency, including making plans and choosing an architect.

The chancellor made full-expensing permanent for some company expenses. This should be extended to all business expenditure, including landlords. This would permit a more rapid decarbonisation of the housing stock. By treating all expenditure as tax-deductible rather than capital, the difficult task of separating capital expenditure would be avoided. A typical landlord pays tax at a marginal rate of 20%. When he sells a property, it is added to the income for that year and taxed at a marginal rate of 28%. This is therefore merely tax deferment and not a loss of tax income.

Also, it would be useful to be able to create a tax-deductible sink fund in the business so that funds could be built up prior to undertaking improvement works without incurring higher-rate tax. At present, all surplus funds create a tax liability, even if intended for energy improvement works, thus delaying the work.

John Grefe

14:35 PM, 27th November 2023, About 5 months ago

It might be a lot of old b**llocks but energy costs are still going up, recently announced. I have had installed a heatpump with solar for electricity, plus a battery back up(in March). My costs since that time is about 20% . 6 tenanted, Victorian semi, solid brick etc. Now started another installation. B**llocks???

Grumpy Old Git

15:35 PM, 27th November 2023, About 5 months ago

Reply to the comment left by John Grefe at 27/11/2023 - 14:35
Yes, I was referring to the "climate crisis" rather than the price of energy. No "climate crisis" = no justification for jacking up energy prices. That would not suit some!

Karen Dodd

16:26 PM, 27th November 2023, About 5 months ago

Reply to the comment left by Grumpy Old Git at 27/11/2023 - 10:45
I am very happy whem people speak the actual truth. When will everyone else realise this is a massive scam.

Grumpy Old Git

16:47 PM, 27th November 2023, About 5 months ago

Reply to the comment left by Karen Dodd at 27/11/2023 - 16:26
When they see though the massive propaganda campaign and realise they have been brainwashed. Trouble is, it is easier to con people than to get them to admit they fell for it.

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