Government reveals plans for radical new EPC rules
The Government is consulting on a number of big changes to EPC rules in its drive for net zero that will affect sales and lettings agents.
The drive for net zero has led the government to reassess the way the EPC system works and it has begun a consultation process on the changes, some of which could have serious consequences for both sales and lettings agencies.
The accuracy and validity of EPCs have long been called into question. In response, the government says it wants to make EPCs more useful, complete and understandable.
Complete picture
It proposes using multiple metrics to provide a more complete picture of a building’s energy performance. These are:
Energy cost: helping individuals understand the financial implications of a building’s energy efficiency and make informed decisions about potential improvements
Carbon: an estimate of the carbon emissions arising from the energy used in the building
Energy use: will offer insights into overall energy consumption and identify areas for energy efficiency improvements
Fabric performance: assessing the thermal performance of a building’s envelope and promoting the importance of well-insulated, comfortable, and energy-efficient spaces
Heating system: providing information on the efficiency and environmental impact of a building’s heating source and encouraging the adoption of cleaner heating technologies
Smart readiness: assessing a building’s potential to integrate smart technologies that can optimise energy consumption and the ability of consumers to benefit from cheaper smart tariffs
The Government is also considering incorporating SMETERS, which measure actual energy use via smart meters against the prevailing weather conditions to give a more accurate picture of the amount of energy a building uses.
More frequent testing
There are also some big changes proposed for the sales and rental markets and these include:
- Ending of the 28-day rule – buildings would require an EPC before they are put on the market.
- Extending the scope of EPCs so that a valid one is required for an entire house in multiple occupation (HMO) every time a room is rented out.
- Short-term holiday lets to require EPCs
- EPC testing to be more frequent than the current 10 years
- A valid EPC will be required for the whole period of a tenancy – i.e. property will need to be retested if its EPC runs out mid-tenancy.
The consultation will run until 26 February 2025 and the government says any changes will be introduced in the second half of 2026.
Since the introduction of EPC ratings in 2007, I can likely count on one hand (perhaps two) the number of buyers or tenants who have genuinely raised concerns about a property’s low rating and decided against it for this reason. It seems evident that both this and the previous government are disconnected from the realities of the market. It’s time they acknowledged the practical implications of their policies.
Most MPs are owner occupiers, so the new rules do not apply to them.
If they were serious about climate change and limiting Carbon Emissions, 64% of the housing stock is owner occupier so that is over half of the housing stock.
This would risk enough of the electorate voting them out of office in 2029.
Landlords are seen as rich people who can afford it, regardless of their personal circumstances.
Rather than prudent citizens who have laid in funds to pay for their retirement.
For many the rental income keeps them from claiming state benefits.
May be better to sell up, have a great holiday and claim benefits.
Both ‘Which? Magazine’ and the National Retrofit Hub (NRH) have recently called for EPCs to be linked to a Digital Property Logbook, so a homeowner has easy access to the data and can propose changes and see potential outcomes. This is consistent with EU best practice (with the EU pushing for roll-out of EPC connected logbooks for all new and refurbished property). Its time to give homeowners much better access to the data and the ability to evaluate the potential of changes to their property. Nigel Walley- Chair of the Residential Logbook Association
A new EPC for HMO’s every time there is a change of tenant in a room is absolute madness. Why on earth should EPC’s be required for short term holiday lets when the holidaymaker (the consumer) does not even pay for the energy use. Please, will someone shake these politicians awake!
Why do the Govt hate Private tenants so much? Yet again measures to increase their rents.