Tenants not interested in a property’s EPC rating

Tenants not interested in a property’s EPC rating

0:01 AM, 18th August 2023, About 9 months ago 12

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An industry body claims while engagement in energy-efficiency ratings is on the rise, tenants rarely show much interest in a property’s EPC rating.

A survey of 271 Propertymark member agents reveals only 2% of tenants always show an interest in an EPC rating of a property and 12% never show an interest at all.

Though the plans have not been made into law, ministers have previously proposed that by April 2025, newly rented properties in England and Wales will need to meet a minimum EPC standard of C – tougher than the current E standard.

The regulation is also slated to apply to existing tenancies from 2028.

EPC reports are not fit for purpose

In the commercial market, 41% of Propertymark commercial agent members reported investors never show an interest in the EPC and 59% reported that tenants never show an interest.

Propertymark says the low engagement is due to a lack of lack of supply in the commercial sector and investors and tenants can be less picky when it comes to energy efficiency.

In the residential market, 47% of Propertymark sales agent members reported that EPCs never influence the offer homebuyers make on a property, while only 1% reported that it always has an impact.

One Propertymark agent told the report that EPC’s are not fit for purpose. The Propertymark member agent said: “The EPC reports are not fit for purpose. You are spending money on measures that are not perhaps best for the property or that will have little to no positive effect on the energy efficiency.

“Seems like it’s just a money-spending activity, rather than actually doing what will have a positive impact on the property.”

Greater financial incentive

The industry body says more financial incentives and clarity on targets are needed to improve energy efficiency.

Timothy Douglas, head of policy and campaigns, said: “Our most recent research shows that, while interest in energy efficiency ratings is growing, a higher EPC rating of a property is not having a significant impact on the sale price in most instances.

“If governments and departments across the UK are serious about moving to net zero through reducing the energy consumption in homes and buildings, landlords and homeowners need a greater financial incentive and support to make energy efficiency improvements.

He added: “The majority of our member agents agree that the best way to do this is to provide clarity on targets, enhance the role of EPCs and introduce grants that cover a broader range of improvements.


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Comments

Judith Wordsworth

10:13 AM, 18th August 2023, About 9 months ago

Tenants are only too glad to have a roof over their heads.

john isaacs

10:53 AM, 18th August 2023, About 9 months ago

A lot of them don't even know what it is , when I have booked the test in and the tenants have said 'EPC ? what's that?' and I explained it and they don't care!

And iwhen this C or higher EPC rule comes in and then you tell the tenants -

'I have to evict you because I can't get the place to a C'

or

'Your rent is going to have to go up to pay for the cost of getting it to a C'

They will say ' I did not care before , I was ok , what's this all about?'

Bob Redley

11:03 AM, 18th August 2023, About 9 months ago

What its all about. The same a Landlords Registration...........money raising! I and noone ive met have seen any difference or got any benefit from either compared with pre EPC and pre Registration. The tenants would prefer to see lower rents not added bureaucracy

NewYorkie

11:26 AM, 18th August 2023, About 9 months ago

Just bought a house with an F EPC. I just wanted the house! It's an 1870 Townhouse in a Conservation Area, so I know there's a lot I can't do, at least not without a lot of hassle and compromise. And to be honest, there's a lot I won't want to do because old houses need cross ventilation.

I will put in refurbished hardwood double glazed sashes, but the air gap will have to be less than standard UPVC due to the width of boxes. That will have an impact on energy efficiency, but for an EPC, it's just 'double glazing', with no consideration of how effective it is.

I have 6 open fireplaces which I won't block up. How does an EPC cater for that?

The list goes on...

The Forever Tenant

12:56 PM, 18th August 2023, About 9 months ago

The place I am currently living in is currently marked as D, though a very high D.

Thankfully the changes I made myself have put it into the C range so there should be nothing the landlord needs to do.

Paul Power

14:24 PM, 18th August 2023, About 9 months ago

Well that's not true, as a Tenant I care about EPC in terms of the serviceability of the windows, doors and usual things that need to be in good order without it being excessive. Didn't really matter though as that particular property over the 3 years I was there ended up with every double glazing unit blown and a dalek potterton boiler that barely pumped hot water. Im now waiting for the changes as I'm no longer in that property but I expect it to be put up for sale and probably for a song bases on what the LL will be required to do to bring it up to spec

Russell Cartner

16:52 PM, 18th August 2023, About 9 months ago

Reply to the comment left by Judith Wordsworth at 18/08/2023 - 10:13
EPC Band C by 2028 maybe. Should it go through, if not carried out believe me tenant would use it against you
Landlords need to wake up to what raising an EPC to C will cost.
A house with an EPC rating of E, F, or G is going to cost a massive amount of money to sort, impossible with a tenant insitue.
My advice is to sell. PRS is stuffed and record amounts of Landlords are getting out, before removal of Sec 21

Russell Cartner

16:55 PM, 18th August 2023, About 9 months ago

Reply to the comment left by NewYorkie at 18/08/2023 - 11:26
You are in a lot of trouble because you will need to spend a massive amount of money to bring to Band C

NewYorkie

17:29 PM, 18th August 2023, About 9 months ago

Reply to the comment left by Russell Cartner at 18/08/2023 - 16:55
I'm in no trouble at all because it's my home. You see, that's the point of the article. Tenant or homeowner, if you want or need that property, the EPC isn't that important. Personally, I believe EPC is total nonsense, irrationally measured to provide inconsistent results, to support Net Zero which is pointless for a country which produces less than 0.01% of global emmissions.

Government [probably Labour] will wake up to the reality that it desperately needs the PRS, most of which cannot be viably moved to EPC C.

Russell Cartner

17:42 PM, 18th August 2023, About 9 months ago

Reply to the comment left by NewYorkie at 18/08/2023 - 17:29
If it s your own home EPC doesn't matter and has nothing to do with PRS.
It will still cost a fortune on improvements
Don't bet on which ever Government gets in being sensible.
PRS is stuffed everyone with any sense is getting out

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