A bank is establishing a working group of industry professionals, landlords and policy makers to see how the private rental sector can become more energy efficient.
The Shawbrook Bank - a specialist lender for the buy to let sector - has recently conducted extensive surveys to investigate landlords’ ability to meet tough new EPC targets this decade.
“We hope that our forthcoming working group provides a space for landlords and the wider industry to share ideas and solutions to confront this challenge, and we look forward to sharing the findings in the coming weeks and months” explains Emma Cox, the bank’s sales director.
She continues: “Improving the energy efficiency of properties is a vital step in reducing our impact on the environment, however, this will not necessarily be a straightforward process for landlords.
“The UK has a significant proportion of older properties that are particularly challenging to improve, and many landlords remain in the dark as to their properties’ current ratings.
“Landlords will require further support from both the industry and the government in order to make the changes in good time. Indeed, with the cost of labour and supplies rising, it could be a costly exercise for all landlords, but there are solutions available.
“It is in everyone’s interest that properties are made more energy efficient, however this cannot be done half-heartedly, and we must ensure sufficient resources are provided so that landlords can make the appropriate changes to benefit their properties and their tenants.”
Since 2008 landlords letting whole properties have had to have a valid EPC rated at E or above to provide to prospective tenants.
EPCs are valid for ten years. After this time, landlords are only required to get a new EPC if they are re-letting to a new tenant.
However the government proposes that rental properties meet a compulsory energy performance certificate rating of band C on new tenancies by December 2025, and on all rented properties by December 2028.
A Shawbrook Bank survey released earlier this week showed that 23 per cent of landlords say the EPC ratings of their properties are currently D or below.
A further quarter of landlords are unaware of the specific energy efficiency rating of their property.
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Just a re-hash of other articles on the same subject, this is very easy indeed...... there is either a massive grant coming for LL's to complete this work or the local authorities need to pucker up and get ready for an avalanche of homeless tenants knocking on their door. It is that simple. My plans to sell are locked in, but if an avenue comes to light for me i will change my plans, spending a large amount of my savings on ripping my flats apart though will NOT happen.
Couldn't agree with you more Simon. I've already started the selling off process... I'm open to persuasion but I don't think I'll see anything in my time which persuades me It's better to hold on to my portfolio.
Until the changes to the EPC regarding the way electric heating is scored (heat pumps, LOT 20, etc) are finalised none of us have a clue what we need to do.
While I may be willing to improve roof insulation, install better heating controls (if the tenant is keen) and possibly solar panels (where appropriate) I am not enthusiastic about evicting tenants to do solid floor or internal wall insulation. Any type of wall insulation isn't a one size fits all solution. Internal reduces living space, cavity isn't always possible or appropriate for the weather conditions, external often can't be done if the wall adjoins someone else's land.
If lenders want to send the right message they could try offering attractive product switch mortgages for existing customers with C or above EPCs.
There needs to be far more clarity about exemptions where circumstances are beyond the landlords control. Leasehold properties where owner occupier leaseholders or the freeholders refuse to allow insulation work or Local Authorities refuse permission for external insulation, double glazing or solar panels for properties that are listed or in conservation areas.
There also needs to be far more debate about the overall package tenants experience, not just the EPC score.
Is the rent above or below LHA level?
How often and by how much has the rent been increased since the tenant moved in?
Is the property located close to all amenities or is a car or extensive use of public transport essential?
Extremely Pointless Certificate
Given that EPCs are cost based will the 54% increase in utilities result in every property losing points?
And will my tenants gain extra points for not using their heating at all?
Maybe an appropriate transparent measure is required rather than the not fit for purpose EPC!
The problem is there needs to be some kind of measure if we go along with the net zero mantra or ensuring bills are kept low for tenants. Currently the EPC works (in most cases), when it is calculating the running cost side of a property. There will always be properties that fall outside the normal but in most cases.
The main issue which needs addressing is how are we going to calculate the carbon costs as we target net zero. As many know electric heating scores well CO2/environmentally but the unit costs of electric mean it is never going to be an economical fuel for heating, with the exception of off peak heaters.
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