Big mortgage lenders call for all homes to have EPCs
In a move that may or may not be welcomed by agents, lenders say all homes, not just those being sold or rented, should have an EPC.
In response to the Government’s consultation process on changes to EPCs, mortgage trade body UK Finance is calling for all homes to have an EPC rating which could help reduce estate agents’ bureaucratic burden.
The trade body says that although significant progress has been made on assessing the EPC rating of the housing stock since the introduction of EPCs in 2007, many homes still do not have one.
Energy performance
By making them compulsory for all homes the Government would get a better understanding of the energy performance of the entire housing stock.
It would also mean estate agents would no longer have to police the issue so tightly and nor – in theory – would missing EPCS delay getting properties onto the market any more.
Agents, though, will be less pleased to hear that UK Finance also says EPCs are likely to get more frequent and complicated and is warning regulators not to turn the transition period into a nightmare.
Government should offer guidance to firms to navigate that gap in a consistent manner.”
“We are concerned,” the industry body says, “About the de facto gap in EPC validity that is likely to emerge during the transition to the (new) Home Energy Model. In advance of this, Government should offer guidance to firms to navigate that gap in a consistent manner.”
The consultation ran until 26 February 2025 and the Government says any changes will be introduced in the second half of 2026.
Read more about the consultation.
From Nigel Walley – Chair of the Residential Logbook Association.
Once again, like Upfront Information, its a half-way step. There is a huge amount of work going on towards reforming EPCs and a Government consultation on the way, but everyone involved seems to think that EPCs should have links to Digital Property Logbooks and should share data with them:
– A new report by the National Retrofit Hub (NRH) has made ‘endorsing logbooks and ensuring links to EPCs’ a key recommendation
– A report on EPC Reform by Which? earlier in the year also recommended that EPCs should link to Logbooks with functionality that allows homeowners to make informed decisions about retrofit work.
– In Europe their ‘Energy Performance of Buildings Directive (EPBD)’ recommended that EPCs link to Logbooks and share data. In Europe they also recommended that Logbooks have API access to all data sources.
If every home had a digital property logbook with full access to EPC data this issue (and the Upfront Information issue) would be solved at a stroke. Across Europe this is now happening, with Logbooks now mandatory in France and Belgium, and being discussed for mandation by the Govt of Ireland.
Nigel
I get the ‘green’ idea behind it. Although I cannot see lenders wanting to save the planet. Call me cynical, but perhaps the angle is more about lenders being concerned about future capital values (i.e. loan to value) for low scoring properties which increases their risk and exposure. Who knows.