Government EPC upgrade plans need to go much further, warns Rightmove

More help as well as significant incentives are needed for both landlords and homeowners to improve energy efficiency and bring down running costs, research from Rightmove suggests today.

One in five (19%) first-time buyers say energy efficiency is a major factor when looking to purchase.

43 YEARS

But research from Rightmove reveals that if green improvements carry on at the same rate, it would take 43 years for 100% of the houses that are currently for sale across Great Britain to reach an EPC rating of A-C. And it would take 31 years for houses that are currently available to rent.

The Neg revealed on Monday how Housing Secretary Michael Gove had indicated landlords could be given more time to improve their properties.

And we told how six out of 10 landlords would rather sell their properties than improve their EPC ratings by 2025.

Now Rightmove research also backs that claim and finds 40% of landlords with one property currently say they are more likely to sell than make improvements.

Rightmove’s Greener Homes report reveals sellers who have improved their home from an EPC rating of an F up to a C could command an average price premium of almost £56,000 (+15%) on top of the local house price growth.

The research also reveals landlords are increasingly shunning lower rated properties, with 61% saying they would not now buy a rental property below an EPC rating of C, up from 47% when asked last year.

STAMP DUTY REBATES

But introducing stamp duty rebates for new buyers who make green improvements, more green mortgage deals as well as grants and tax benefits for green tech such as solar panels and electric car charging points could all boost energy efficiency improvements.

Johan Svanstrom, Rightmove Chief Executive, says: “In the residential sector there are significant challenges to achieve greener homes at an adequate speed, not only the cost barriers to retrofit, but also a lack of knowledge on what’s best to do to a home and what it will yield.”

Tim Bannister, Rightmove’s Director of Property Science, adds: “It’s clear that the current incentives aren’t yet big enough to make people sit up and take notice, and even the incentives that do exist aren’t easy to find out about.

 “The days of building energy inefficient homes is already over and we need to get to the point when running an energy inefficient home is a thing of the past.

“People need to know what to do, in what order, why they are doing it, and what benefits it will bring.”