Making homes more efficient: EPC consultation open

The Association for Decentralised Energy (ADE) supports the proposal, stating that it is crucial to net zero and to ensuring private tenants have decarbonised homes

The government has opened a consultation on the Energy Performance of Buildings, including a review of the Energy Performance Certificate (EPC) rating system within the private rented sector (PRS).

Under new plans, all private rental homes must achieve an EPC rating of C or equivalent by 2030; the current minimum standard is E.

An EPC signals the property's energy efficiency and carbon emissions, with properties scored on aspects including heat or energy loss, insulation, heating and water system efficiency, double glazing and energy-efficient light bulbs. To achieve a C rating, a score of between 69 and 80 is required, although the methodology used to calculate these scores could be revised under new proposals.

There are also plans to reduce the current 10-year validity period of EPCs, and to extend existing rules requiring all Houses in Multiple Occupation (HMOs) to obtain an EPC certificate.

Professor David Jenkins, Professor of Energy and Buildings at Heriot-Watt University said: “It’s vital that rental homes be brought up to more ambitious efficiency targets and EPC ratings, although imperfect, are the vehicle we have to do this.”

However, doing so may be a challenge for landlords. While small changes such as switching to low-energy LED lighting or insulating hot water tanks can improve the EPC score, estimates suggest it could cost around £8,000 to achieve a C rating.

Jenkins said: “The level of ambition being presented is generally well argued, but we also need to consider whether the funding landscape is commensurate with this ambition. For the PRS, this also needs to consider the split incentive between tenant and property owner, and the diversity of buildings within that sector; quoting average retrofit costs hides the wide variation in what this cost will actually be for specific properties.”

Without accounting for this variation, “the danger is that homes simply will not get treated or policy will have to be adjusted to widen the exemption categories for harder to treat properties. Both these outcomes will result in the sector missing key carbon targets,” Jenkins added.

In response to questions about possible exemptions and alternative pathways for landlords unable to meet requirements due to structural limitations, Miatta Fahnbulleh, Energy Minister, said “the government will set out proposals on the exemptions regime for properties that cannot meet the proposed increased standard.”

“In addition to [tackling] the climate emergency, decarbonising homes will provide clear health benefits for communities, including reduced respiratory and cardiac diseases…”

The Association for Decentralised Energy (ADE) supports the introduction of higher minimum energy efficiency standards for PRS properties. Emily Baer, Buildings Decarbonisation Officer, said: “Raising standards for rented properties is crucial to the net zero transition and to ensuring that approximately five million privately renting households in England and Wales benefit from decarbonised homes.”

Baer continued: “In addition to playing an essential role in tackling the climate emergency, decarbonising homes will provide clear health benefits for communities, including reduced respiratory and cardiac diseases, improved indoor air quality, a reduced impact on the healthcare system, increased health equity for vulnerable populations, reduced winter deaths, and improved mental health outcomes.”

A petition on the House of Commons website is calling for energy efficiency legislation to apply to all properties, not just rentals, so owner-occupiers are held to the same standards.