According to a prominent energy expert, expediting the proposed revamp of Energy Performance Certificates (EPCs) is crucial to assist landlords in the private rented sector. Elmhurst Energy, an accreditation scheme for energy assessors, emphasizes the need for a clear deadline for property improvements, alleviating concerns about the associated costs and complying with the law.
Additionally, Elmhurst Energy calls for confirmation on whether all rented homes in England and Wales will be required to achieve an EPC band C rating by 2028 or earlier. This matter has been under consultation since 2021, with anticipated news not expected until 2024.
Significantly, landlords have made considerable progress in readiness for higher standards. Recent polling suggests that approximately 80% of landlords have already implemented energy efficiency measures, and over 60% of properties within their portfolios already meet or exceed the C rating.
Stuart Fairlie, the Managing Director of Elmhurst, highlights that landlords’ concerns regarding property-related regulatory changes are largely unfounded. He emphasizes the importance of providing absolute clarity on the deadline for achieving EPC band C, establishing policies for achieving carbon net zero in the housing stock, and specifying the level of financial support landlords will receive for implementing energy efficiency improvements.
Fairlie emphasises the need to provide effective support to landlords in enhancing the energy efficiency of their properties for tenants. To achieve this, he highlights the necessity of obtaining an accurate assessment of the current energy performance of properties, which is currently lacking. Therefore, it is crucial to overhaul the Energy Performance Certificate (EPC) system to assist landlords in making the appropriate improvements to meet the EPC band C requirements.
Elmhurst Energy advocates for an expanded role of EPCs beyond measuring energy costs alone. Instead, they propose an enhanced EPC that encompasses a comprehensive analysis of energy expenditure, energy usage, and carbon emissions.
This holistic approach would offer a more precise evaluation of energy efficiency. By providing tailored recommendations, landlords would be empowered to make informed decisions about long-term investments. For instance, cost-effective measures like loft or cavity wall insulation could be suggested, along with promoting confidence in selecting low carbon heating systems such as heat pumps.
Fairlie acknowledges that EPCs are facing considerable scrutiny and criticism, particularly in light of increasing fuel poverty, environmental concerns, and energy security issues.
“It is understandable that there are concerns surrounding the current state of Energy Performance Certificates (EPCs), considering they have been in use for over 15 years. Initially, EPCs were primarily designed as a cost indicator, indicating the affordability of running a home. However, completely eliminating EPCs would be a regressive step, depriving us of a crucial benchmark for progressing towards a housing stock that aligns with carbon net zero goals.
“The updated version of the EPC should encompass the essential data known as the ‘three Cs’: energy cost, energy consumption, and carbon emissions. The inclusion of cost metrics would aid in addressing fuel poverty and managing home running expenses by providing recommendations to reduce energy bills. The energy consumption measure would illustrate strategies for decreasing energy usage, while the carbon emissions figure would support policy-making decisions aimed at reducing carbon emissions to achieve the net zero target.”
