Pressure builds for England’s landlords to meet EPC rules

Pressure builds for England’s landlords to meet EPC rules

9:58 AM, 23rd March 2023, About A year ago 22

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Time is running out for England’s landlords to meet the Government’s proposed deadline to improve rental property EPC ratings to a C, one homebuying firm says.

The Open Property Group says that just 41% of homes in England meet the recommended Energy Performance Certificate (EPC) rating of ‘C’ or above – up 1% from last year.

This is despite government moves to reduce the country’s carbon footprint by boosting energy efficiency in homes.

The EPC scale is ranked from A-G and is used to measure the efficiency of a property based on the level of its emissions, its potential heat or energy loss and its likely fuel costs.

‘Noise around ‘greening up’ the UK’s property stock’

The firm’s managing director, Jason Harris-Cohen, said: “There has been a lot of noise around ‘greening up’ the UK’s property stock, and despite multiple campaigns and press coverage, homeowners are woefully behind the Government’s target.

“The pressure is really building for landlords especially, as we are less than two years away from the new EPC deadline.

“As things stand, a huge chunk of buy-to-let properties will be illegal to let from the end of 2025, unless the properties receive energy efficiency upgrades to achieve a minimum EPC rating of C.”

‘Increase in ‘C’ rated homes reflects the troubles landlords face’

He continued: “A measly 1% increase in ‘C’ rated homes reflects the troubles landlords face.

“While changing light bulbs and adding an extra layer of insulation to the loft will no doubt help, the major alterations that really improve an EPC are expensive.

“Double glazing, solar panels and heat pumps tick the boxes but they are expensive items to purchase, cause major disruption to install – perhaps even requiring the tenant to temporarily vacate – and there is no proven return on investment for newer technology.”

He added: “There’s also the added complication of a lack of materials and labour, meaning even the most willing of landlords are thwarted.”

Meet the EPC rating of ‘C’ or above

Currently, 63% of properties in the City of London meet the EPC rating of ‘C’ or above – the same percentage as 12 months ago.

Salford is a close second with 59% of properties meeting the recommended energy rating, a 1% increase on the previous year.

And, for the second year running, Birmingham was ranked last, where only 33% of homes meet the target energy rating.

Bath and Brighton both fell below the national average, with just 38% of their homes scoring an EPC rating of ‘C’ or above.

Properties meeting the rating ‘C’ or above

On a regional basis, the research shows that London has 46% of its properties meeting the rating ‘C’ or above, while Yorkshire and The Humber was the lowest scoring region on the list with just 36% of homes meeting the recommended EPC standard of ‘C’.

Mr Harris-Cohen said: “It’s interesting that Yorkshire and the Humber was the worst region for homes with ‘C’ ratings.

“Buy-to-let yields in the region are some of the strongest in the UK – perhaps landlords are reluctant to compromise their strong income by investing in eco improvements – a sentiment we feel is being repeated across the UK.”


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Comments

GLee

6:46 AM, 24th March 2023, About A year ago

You have accepted the £15k quote and paid deposit for solar panels to make property to a C, but are told the leadtime for installation is 2 years because of labour/material shortages. You have sitting tenants who are on a statutory periodic tenancy. The deadline for a C is next month. What do you do? Serve Section 21? (if it still exists) You can't evict the tenant because Shelter is fighting for them nail and tooth. So, you now find you are breaking the law on the EPC regulation. Then what? Rent Repayment Order against you? This is a Kafkaesque situation. The Government needs to clarify.

Sanjeev Markanday

8:26 AM, 25th March 2023, About A year ago

My understanding is that this is still a proposal and not enshrined in law. However a few agents have been stating this as a fact , I can only suspect to scare some LL to selling!

Martin Richardson

10:57 AM, 25th March 2023, About A year ago

Reply to the comment left by Sanjeev Markanday at 25/03/2023 - 08:26
Also, careful use of tenant objection (if it happens) can force a 5 year exemption stay of execution, if they stay...

Gordon Manning

17:42 PM, 25th March 2023, About A year ago

Reply to the comment left by GLee at 24/03/2023 - 06:46
You are not expected to magically make your property a C on the 1st of January 2025 (you have until 2028 to do that) but you will not be able to re let if your tennant moves unless you bring it up to C spec or get an exemption.
Exemptions can be given(by current rules) for a number of reasons including:
Your tenant does not want the disruption of the improvements.
The cost of the cheapest improvement stated in the EPC is greater than £3500.

It’s not as bad as you think.

Patrick McLoughlin

11:56 AM, 26th March 2023, About A year ago

Reply to the comment left by GLee at 24/03/2023 - 06:46
And there are many properties where the current EPC indicates that the property is incapable of upgrade to C. Will it be illegal to let these out? Will this contribute to a shortage of properties available to rent?

Reluctant Landlord

17:58 PM, 27th March 2023, About A year ago

Reply to the comment left by Derek STOBBS at 23/03/2023 - 19:21
Get the tenant to sign a letter (that you write) to say he/she doesn't want the upheaval and wont give permission until they leave.

SW11

19:31 PM, 27th March 2023, About A year ago

Reply to the comment left by Gordon Manning at 25/03/2023 - 17:42
This statement is incorrect - it may be the intention that this will happen but as others have stated no regulation actual or draft have been published

Grumpy Doug

23:04 PM, 27th March 2023, About A year ago

Reply to the comment left by Gordon Manning at 25/03/2023 - 17:42To confirm what others have said, EPC C and related timescales still at conjecture stage. The £3500 that you refer to is the spend level to reach the current EPC E requirement.

Rickie Dickson

10:53 AM, 7th May 2023, About 12 months ago

Reply to the comment left by Jakjak at 23/03/2023 - 15:55
Linking it to actual smart meters would make no sense, as there are too many variables involved. The energy bills for an elderly couple heating the home 8 hours a day, 7 days would be significantly different to a young couple who go to work everyday and only heat their home 2 hours a day in the evenings. The property would be the same but the energy consumption totally different and would provide no meaningful information to a prospective purchaser or tenant.

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