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10:54 AM, 28th July 2023, About 10 months ago 48
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Have you invested thousands of pounds to upgrade your rental property to meet the proposed EPC rating of C? Or have you decided it’s too expensive to do the work and sold up? Then this week’s news from Michael Gove probably made you very angry. I know I was. In the words of the great Johnny Rotten: “Ever get the feeling you’ve been cheated?”
It’s not just the number of idiots who keep pushing the non-existent deadline of 2025 to meet a minimum EPC rating of C for new tenancies, and 2028 for all tenancies – THERE IS NO DEADLINE! – it’s the fact that many of us girded our loins and started preparing for what we expected was to come.
Now Property118 reports that Gove is saying we should slow down the move to a deadline because too much is being asked of landlords and the predicted cost of improvements. What?
In recent years, the UK government has pushed forward with its environmental agenda, with the Energy Performance Certificate (EPC) rating being one of the cornerstones of its efforts to reduce carbon emissions.
Despite the fact this proposal was only aimed at the private rented sector and not social housing and residential homes, most landlords knew deep down that we would be targeted with fines if we didn’t comply. So, many of us did.
There will be lots of landlords who will have spent considerable sums of money to upgrade their properties’ EPC rating or, in some cases, sold their properties altogether to avoid the never-agreed-but-everyone-thinks-there-is-one deadline. Now, with the government contemplating a rethink on when this should happen, landlords who are out of pocket will be left questioning the fairness and reliability of the whole process.
For me though, the biggest tragedy is for those landlords who had old homes and sold up, probably with a decent tenant family, because they knew it was an impossible task to improve the EPC rating. A family forced to move on, for what? A landlord who gave up an asset on a poorly thought-out wheeze.
I don’t doubt addressing climate change and reducing energy consumption is essential. As responsible citizens, landlords, like everyone else, should contribute to these noble goals. Nevertheless, it is crucial to address the issues arising from the government’s flip-flopping stance on the EPC deadline.
When it was first mooted, landlords came under immense pressure to upgrade their properties. This was not helped by various PRS organisations and even lenders who hadn’t quite twigged that the 2025 then 2028 deadline was an ambition and not a law.
This has created lots of confusion in the sector and led to many landlords investing significant amounts of time and money to improve the energy efficiency of their properties, only to now be told that the ‘deadline’ might be reconsidered. This inconsistency showcases a lack of commitment on the government’s part and raises doubts about the seriousness of their climate change policies.
Also, the cost burden of improving the EPC rating falls solely on the shoulders of landlords. These expenses can be substantial, especially for small-scale landlords who own one or a few properties. Selling up then made financial sense even though that leaves fewer homes to rent.
My other big issue is that the EPC ratings themselves have been criticised for their accuracy and effectiveness. Just read some of the forum answers on Property118 which highlight many landlords’ experiences that the EPC rating system is flawed and inconsistent – which leaves most of us with a lack of faith in the validity of the entire process. And the criteria for future EPC ratings might be changing! You couldn’t make it up.
If the government is serious about driving real change, they should work on developing a more robust, reliable and transparent system to accurately assess a property’s energy performance. And that’s for ALL properties and not just those owned by landlords.
We can’t be the only ones responsible for fighting climate change while other property owners escape the same level of scrutiny.
So, if you feel disappointed at forking out thousands of pounds on EPC improvements, or you have sold up or feel saddened that decent tenants had been forced to find somewhere else to live, then join the club.
I keep on saying the same thing: We need to organise properly as landlords to make a stand that the government and tenant organisations will be afraid of. Without PRS landlords delivering decent homes for rent, where will private renters live?
The EPC debacle is just one issue we should unite and fight against, but we probably won’t which means life as a landlord will continue being the depressing and soul-destroying occupation it has become.
Conned? Not quite the word I would use but then I’m not allowed to use a word that rhymes with ‘cooked’.
Until next time,
The Landlord Crusader
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David Nichols
11:47 AM, 28th July 2023, About 10 months ago
For all those that sold up, those properties remain energy inefficient, many bought by 1st time buyers pushed into buying, now seeing their coming staggering remortgage deadline looming.
New builds still fitted with gas heating makes a mockery of this whole episode.
This U turn all stems from Uxbridge by-election that Tory MPs realising the only way to keep power is to listen to the climate backlash.
I've sold 3, but no regrets, as the landlord bashing still continues whilst the growing tenant application queue crisis is still blamed on the landlord.
homemaker
11:51 AM, 28th July 2023, About 10 months ago
I really don't understand why this causes so much angst. All my properties bar 1 are now at a 'C' following minor upgrades over the years. Several of my homes are Victorian terraces. I have Installed double glazing, energy efficient boilers, and low energy lightbulbs and this has been off set against maintenance costs for tax puposes. I have also installed solar panels and loft and cavity wall insulation where possible as capital costs which I will recover on transferring the portfolio ownership into a company shortly. The end result is that my homes have been improved and theoretically they are more energy efficient making them more attractive to tenants. I have resisted solid wall insulation as I'm unsure of the impact on the structure and because of the cost/ benefit and similarly am unsure of the value of heat pumps in Victorian terraces, but the measures I have taken haven't been at enormous cost. My remaining 'D' rated property is a 1960s flat with electric storage heating and I think that if I replace the existing units with modern units this may be sufficient.
Rod
12:11 PM, 28th July 2023, About 10 months ago
Good of Gove to finally fess-up that they need landlords to house voters, so has kicked the MEES/EPC review into the long grass - or is that over to Sir Kier?
The issue is that no one knows what the optimum solution will be as we transition from carbon based heating to solar / wind / hydro / nuclear / hydrogen / battery powered electricity
What is clear is that
- retrofit is lower carbon than new / rebuild
- draft proofing and insulation will not be wasted
- the journey will take longer than first proposed
What we need is a framework which
- provides a clear, consistent SAP methodology that recognises evidence of previous works and offers the option of invasive investigation, where required
- a realistic long term plan which includes financial support, training assessors and installers
- a clear guide to what costs can be applied towards the cost cap, ie is it everything ever spent or will it be a reset with only costs for works carried out after a certain date for prescribed works?
Dennis Leverett
12:20 PM, 28th July 2023, About 10 months ago
Policy no. 1, do nothing till you have to. Everything said from all parties is now purely a vote catcher which is why at the moment none of them will actually commit to anything. As we know from experience, election manifesto's mean nothing and should be made legally upholding. Right now time to look after numero one and those you love.
Dennis Leverett
12:25 PM, 28th July 2023, About 10 months ago
Reply to the comment left by John Mac at 28/07/2023 - 11:16
What caused the ice age to disappear as there were no gas guzzlers etc. then? I think I might Google that and find out how many different theories there are.
Mick Roberts
12:27 PM, 28th July 2023, About 10 months ago
Same as Selective Licensing. Nottingham Landlords spent hundreds of £ thousands if not £ millions on thumbturns & floor plans before I got them dropped.
I've just had one been done this week, internal insulation-I can send photo's to anyone on request, cost the company via a grant via the Govt via the taxpayer about £6000. First impression, I'm not impressed. Not tidy work. Not important walls done. However it is said to get it down to an EPC C.
Woman has lost space in her living room, so much so her big settee no longer fits.
But if she also gets cheaper bills this winter, will she be happy?
Too many quick companies setting up to take the money for these grants with no accountability. I'd suggest u all to do a LOT of research when u start being contacted, into the Lead generators, the assessor, the company behind the assessor. Get things in writing with addresses & if u have time, meet the builders on site.
U say it very well Crusader on Landlords selling up & tenants been made homeless.
Ha ha Cooked love it.
reader
12:34 PM, 28th July 2023, About 10 months ago
To reinforce what Mick Roberts says about the quality of grant assisted insulation companies.
I asked the installer for their written specifications and in particular what they were going to do about the Victorian high skirting boards and ornate plaster work. They had no answers.
Reluctant Landlord
13:16 PM, 28th July 2023, About 10 months ago
Reply to the comment left by Mick Roberts at 28/07/2023 - 12:27
slightly off piste with the thread Mick but I have a few questions on SL. The fools at Birmingham have cottoned on to the cash cow train...
Have Notts changed the LL obligations at any point within the five year licence ? BCC seem to have issued some licences with certain obligations, then for later ones issued, worded differently and seemingly asking for more things to be met.
Do you have to provide all room sizes in the house no matter if the rooms as not classed for habitable spaces anyway? BCC asking for kitchen and bathroom room sizes despite none can sleep in them anyway (they are saying they need to know the sizes so they can determine the number of persons 'allowed' in the property and issue a licence on this basis, but if you cant sleep in a bathroom then this wont be counted as a room anyway so no need to give them the size!?)
Do you blank out the name of the tenant on the gas cert and EICR when you give the council a copy? Why do they need to know this info?
GlanACC
16:47 PM, 28th July 2023, About 10 months ago
Not done anything bar loft insulation, and wont until the now (presumably) amended bill passes - will it pass before labour get voted in, thats another issue. My tenants are happy with the way thing are and don't want any disruption.
Mick Roberts
17:20 PM, 28th July 2023, About 10 months ago
Reply to the comment left by at 28/07/2023 - 12:34
Yes,
I know this anyway, but now that very first man is only after his bit of commission. With these serious works on our houses, we NEED to get TALKING to them installers & emails in writing from them what they doing.
It's ok having a free boiler where not much to go wrong, but altering the fabric of the building is another thing.