Tag Archives: EPC

More Calls For EPCs To Be Reviewed And Removed?

The National Residential Landlords Association (NRLA) has supported a report by MPS which criticises Energy Performance Certificates (EPCs), and has called for a better standard of energy-efficiency measures for properties.

At this point in time, rental properties must have a rating of E or better. However, the Government is looking to raise the minimum rating from E to C. The timescale for this change is as follows:

  • New tenancies should hold at least a C rating by 2025
  • All existing tenancies should hold at least a C rating by 2028

The all-party Environmental Audit Committee states EPCs are outdated. They also state that EPCs don’t support modern energy efficiency, nor do they support low carbon heating measures.

The group says the Government has underestimated the costs associated decarbonising UK homes by 2050. They claim the underestimation stands at between £35 billion and £65 billion.

Cost will always be a significant factor

Around 19 million properties in the country require upgrades to meet band C standards. This might cost on average £18,000 per property. If so, this is a figure which is significantly higher than the Government’s estimate.

NRLA local authority policy officer Gavin Dick says: “We welcome the report, which features a range of recommendations that the NRLA have been calling for, which we believe would ensure landlords are empowered to make these essential changes. We know that landlords are willing to do the work, but they require more information on what updates to make and the order in which to do this work to make their properties energy efficient.”

Gavin Dick concludes by saying; “The committee recommendation also supports the NRLA’s calls to Government to roll over funds for the Green Homes Grants scheme. We’re also very supportive of the Committee’s call for the introduction of Building Renovation Passports to aid in the decarbonisation of homes. In our view the Committee’s recommendations would give landlords confidence to carry out the work to ensure the PRS plays its role in helping to bring about a net zero Britain by 2050.”

There are many recommendations to consider

As well as recommending EPCs are replaced with Building Renovation Passports, the MPs’ committee made the following recommendations:

  • All allocated funding for the Green Homes Grant that has not been spent by the end of March 2021 should be rolled over
  • Government should set out an ambitious but realistic trajectory for owner occupiers to achieve minimum EPC C standards in its Heat and Buildings Strategy
  • Government should work with the financial sector and major landlords, including local authorities and other social landlords, to stimulate renovation through green mortgages, green finance and low-cost loans
  • Schemes such as the Home Upgrade Grants, Social Housing Decarbonisation Fund and phase two of the Green Homes Grant Local Authority Delivery Scheme should all have their funding front-loaded and the schemes rolled out without delay
  • The Chancellor should reconsider proposals to reduce to five per cent the rate of VAT on the labour element of refurbishment and renovations, and reinstate the reduced rate of VAT payable on Energy Saving Materials at five per cent while expanding its scope to cover energy storage, heat pumps and electric vehicle charging. Up until 2019, certain clean technologies were eligible for a reduced rate of VAT of five per cent
  • The government should consider how the national infrastructure bank could be used as a vehicle to finance energy efficiency given the scale of success achieved in Germany through its state funded low interest loan scheme
  • The government should set out how energy efficiency improvements can be reached in homes currently out of scope in its “cost effective, practical and affordable” criteria
  • The government’s basic energy advice service available in England should be upgraded to a specialist bespoke advice service similar to the Home Energy Scotland network
  • The social rented sector should be subject to the same standards as the private rented sector

If you are a landlord in or around Peterborough, and you need assistance in managing your rental property, we can help. We know these are challenging times for landlords, but there is a demand for rental property. When you need guidance in the local market, contact Just Lets Peterborough today, and we will be happy to help you.

You can find Just Lets Peterborough at 142 Oundle Road, Peterborough, Cambridgeshire, PE2 9PJ. Feel free to email us at peterborough@justlets.com or call us today on 01733 346255.

EPC Changes Proposed – What Landlords Need To Know

One of the most challenging aspects of being a landlord is staying in touch with legislation. At the start of 2020, English landlords had more than 150 pieces of legislation to comply with. With this guidance being updated regularly, and new legislation being passed, it is often a full-time job keeping up with the administrative side of being a landlord.

At Just Lets, we understand the challenges of being a modern landlord. We are pleased to say we help many landlords in and around Peterborough, and we want to ensure you make informed decisions.

Your rental property must comply with MEES regulations

Not only do we keep our landlords up to date with current legislation, but we also ensure they receive an early warning about proposed changes. While there is no need to act now, landlords should be aware of proposed changes regarding the Energy Performance Certificate (EPC), Minimum Energy Efficiency Standards (MEES) and the standard of your rental property.

If you let property, you must hold a valid EPC. Also, the rental property must be classed as an E or better. If your rental property is classed as an F or a G, it is not suitable for letting purposes. (As always, there are some exemptions, but the vast majority of rental property must meet these standards.)

There is no denying energy efficiency is an important topic, and it is an issue that tenants are interested in. When a rental property has a good standard of energy efficiency, it is easier to heat. This lowers energy bills, making the property more appealing to tenants.

In the long-term, landlords also benefit by improving the energy-efficiency rating of a rental property, but most focus falls on the tenant.

Are changes coming to energy efficiency in rental property?

The new proposal comes from the Department of Business, Energy and Industrial Strategy. It is looking for the EPC standard on private rental properties to be a Band C or better by 2025 for all new tenancies, and by 2028 for all tenancies.

Paul Offley, the compliance officer at The Guild of Property Professionals, has spoken about the proposed EPC changes.

Paul said; “Following the recent reports in some of the industry press, I have received a number of concerns relating to the proposal to introduce a new minimum energy efficiency rating for the Private Rental Sector (PRS) in England at level C, which would apply for all new tenancies from 2025 and all existing tenancies from 2028. As you can imagine there are a number of properties where this will impact significantly on landlords in some areas where the cost of energy improvements could be high.”

Paul continued by saying; “Landlords may also be concerned at the increased costs they may face, especially as some may have issues with rent arrears from their tenants who have been impacted by coronavirus – but ‘don’t panic’ is my clear message. At this stage the government has announced its intention and issued a consultation process, everyone involved with the PRS has until the end of December 2020 to have their say and submit a response to the consultation; so don’t suffer in silence this is your opportunity to have your say on this topic.”

If you feel strongly about this matter, you have time to voice your opinion. You can email PRStrajectoryConsultation@beis.gov.uk, or visit the website at https://beisgovuk.citizenspace.com/energy-efficiency/improving-energy-performance-privately-rented-home/.

If you are a landlord in or around Peterborough, and you need assistance in managing your rental property, we can help. We know these are challenging times for landlords, but there is a demand for rental property. When you need guidance in the local market, contact Just Lets Peterborough today, and we will be happy to help you.

You can find Just Lets Peterborough at 142 Oundle Road, Peterborough, Cambridgeshire, PE2 9PJ. Feel free to email us at peterborough@justlets.com or call us today on 01733 346255.