Mark Bailey, companion at Landwood Group
Makes an attempt to enhance the vitality effectivity of UK properties are laudable however, with out satisfactory funding and help, are doomed to fail.
Power Efficiency Certificates have been obligatory since 2007 however are usually not having the specified impact on the push for vitality environment friendly houses.
Launched following an EU directive, EPCs have had some success in Europe however haven’t made an enormous impression within the UK the place we now have a a lot older housing inventory.
The UK’s housing inventory is the oldest of any of European international locations, with a higher share of houses constructed earlier than 1946 (38 per cent) than wherever else within the continent. After all older houses are usually poorly insulated, resulting in greater vitality payments and price extra to make environment friendly.
It’s estimated that greater than half of the UK’s housing inventory stays beneath a C score.
The reasoning behind the bid to cut back carbon emissions in housing was clear. The European development sector accounts for roughly 40 per cent of ultimate vitality demand and 36 per cent of carbon dioxide emissions, with residential buildings accountable for two-thirds of the sector’s vitality consumption.
So, with one of the best intentions, the European Union launched EPCs to enhance transparency and encourage sustainable renovations – the initiative has fallen significantly wanting expectations.
EPCs undergo from elementary flaws undermining their effectiveness: poor information high quality, extremely subjective course of, restricted public consciousness and insufficient legislative framework.
These shortcomings have eroded public belief within the certification course of. Administrative complexities and bureaucratic hurdles additional complicate implementation, whereas the technical language creates a major disconnect between specialist assessors and on a regular basis customers.
Belief is additional eroded as a result of blended high quality of assessments. An investigation by Which? in 2024 discovered that, of an admittedly small pattern dimension, nearly all of EPCs had been inaccurate.
Eight out of 12 of the owners famous that their EPC had main errors – they mentioned the descriptions of key facets of their dwelling, reminiscent of home windows, roofs and heating methods, had been incorrect. One EPC contained a number of vital errors and the reassessment raised the vitality effectivity score transferring up two bands, from D to B.
It’s truthful to say that EPCs are additionally doing nothing to assist low-income households who are likely to reside in much less energy-efficient housing.
Low-income households face a disproportionate monetary burden from renovations. The BRE estimates that enhancing a property from an EPC score of D to B sometimes prices between £8,000 and £15,000, to cut back annual vitality payments by roughly £500.
For these trying to promote, optimistic EPCs could make their dwelling extra saleable however are unlikely to enhance the worth.
The disparity in market efficiency between energy-efficient houses and their much less environment friendly counterparts is turning into more and more evident. Analysis from UCL Power Institute reveals that properties with the bottom EPC scores (F and G) now spend, on common, 25-30 per cent longer in the marketplace than comparable A and B-rated houses.
In actual fact, half of all lenders now provide particular ‘inexperienced’ charges. Power environment friendly houses are sometimes these with an EPC score of both an A or B which can additional enhance that saleability.
With out monetary help, how many individuals struggling within the present financial local weather can afford the funding in, for instance, warmth pumps and triple glazing?
How do landlords investing in properties pay for the enhancements with out passing that price on to tenants?
The federal government should design extra equitable monetary mechanisms past paltry subsidies, with tailor-made incentives addressing totally different financial circumstances.
With out focused help, EPC insurance policies danger exacerbating housing inequality while failing to ship on environmental goals.
To genuinely speed up a transition to low-carbon housing there must be a brand new method quite than one which penalises owners, landlords and tenants who’re unable to afford the enhancements.
