Hello Readers,
I’m sure you’re sick of the topic by now, but we’re talking EPCs again. It’s certainly a hot potato at the moment and one with goalposts that keep moving!
I thought I’d put a summary of the articles I’ve written so far below as I was looking through and they really do show something of the debacle over the last few years:
- January 2018: EPC legislation changes affecting EVERY rental property are imminent (bringing in EPC E minimum)
- October 2020: Government Announces EPC U-Turn (proposing an EPC C and then B minimum)
- April 30 2023: Landlords May Be Given An Extra Three Years To Meet Proposed EPC Requirements
- May 23 2023: New Minimum EPC Grading Brought In For Commercial Premises
EPC Upgrade Delay
Why all this noise about EPCs and the bigger question… why another article?
Well, after my article in April about another potential three years for EPC improvements there has been another development in that Housing Secretary, Michael Gove has jumped on the topic, calling for a deadline reprieve to give landlords a break.
Dubbed something of a political move as well as being the right thing to do in the wake of the cost-of-living crisis, Gove has said:
“My own strong view is that we’re asking too much too quickly… We do want to move towards greater energy efficiency, but just at this point, when landlords face so much, I think that we should relax the pace that’s been set for people in the private rented sector, particularly because many of them are currently facing a big capital outlay in order to improve that efficiency.”
With costs being around £8,000 – £20,000 per property, it’s no surprise and perhaps the government has started to see some form of sense in the realistic ability for landlords to meet the target.
Interestingly, research by Green Building Renewables has highlighted that 63% of landlords would rather sell than carry out the upgrades meaning that this policy, if not handled correctly, could end up decimating the already short housing stock.
I think that what landlords need is some certainty. Either these proposals are going to go through or they’re not and if they are, landlords can then plan and take action. The uncertainty helps no one and I think it’s utterly ridiculous as no landlord is going to spend the kind of sums we’re talking about out of the blue.
The NRLA has spoken up about this uncertainty, commenting that:
“The NRLA wants to see properties as energy efficient as possible, but the sector needs certainty about how and when this will happen… Ministers need to develop a proper plan that includes a fair financial package to support improvements in the private rented sector. We will continue to work with all parties to develop pragmatic and workable proposals.”
Grant For Home Upgrades
It’s worth highlighting that Medway (under Cambridgeshire and Peterborough Combined Authority) has been added to phase 2 of the Home Upgrade Grant (HUG 2) to be delivered from April 2023 until March 2025.
How you access this grant, I will needs to find out but you can read more here and the qualifying requirements are homes which:
- are low income
- are off the gas grid
- have an Energy Performance Certificate (EPC) between D and G
- live in one of the local authority areas listed (find your council tool)
Banning Gas Boilers
In what might be a last twist of fate, Michael Gove has changed his mind on phasing out gas boilers by 2035 and forcing landlords to upgrade – surely not to heat pumps?!
Realistically, the only alternative to a gas boiler is a heat pump, which I personally do not think is any solution atal.
Heat pumps do not work in old, draughty Victorian housing stock such as those in Medway. Perhaps a better solution will come along and perhaps landlords will have no choice but to upgrade their insulation as part of this!
With the cost of a heat pump being up to £18,000, perhaps this change could leave landlords worse off..?
In conclusion, uncertainty reigns and I wish the government would make its mind up!
I’d be interested to hear your thoughts!
Hasan
