{"id":124819,"date":"2023-04-18T09:01:17","date_gmt":"2023-04-18T08:01:17","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=124819"},"modified":"2023-04-18T09:03:50","modified_gmt":"2023-04-18T08:03:50","slug":"rental-sector-must-scramble-meet-requirements-new-epc-regulations","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/energy-news\/rental-sector-must-scramble-meet-requirements-new-epc-regulations\/124819\/","title":{"rendered":"Rental sector must scramble to meet requirements of new EPC regulations"},"content":{"rendered":"

Under new EPC regulations proposed by the government, 1.9m bedrooms in London rental properties would be unfit to let by 2028<\/h2>\n

Outra has found that new Energy Performance Certificate or EPC regulations proposed by the government would impact over 4.7m rental rooms, with London’s rental stock particularly affected.<\/p>\n

Data science firm Outra that 4.5m rental properties across the UK currently have an EPC rating of D or below<\/a>.<\/p>\n

Of these rental properties set to be affected by the new EPC regulations, 841,000 are in London, with 1.9m rooms at risk of becoming unlettable. In total, there are 4.7m rooms across the UK in rental properties EPC D or below.<\/p>\n

The government aims for all tenanted properties to have a minimum EPC rating of C by 2028<\/h3>\n

The government will reportedly cap the maximum spend per property at \u00a310,000 \u2013 regardless of whether or not the C rating is achieved, meaning landlords face a cumulative bill of \u00a345bn just to upgrade their properties<\/a> to the bare minimum.<\/p>\n

There are concerns that the expense of upgrading properties<\/a> will lead landlords to raise rents or sell the property outright, which could price more renters out of housing- on top of those already struggling with housing and bills costs.<\/p>\n

Currently, all privately rented homes in England and Wales need to meet a minimum energy performance of band E before they can be let.<\/p>\n

Ministers had previously proposed a deadline of 2025 for newly let rentals to achieve an energy performance rating of at least a C, and a deadline of 2028 for all other rented properties. The new 2028 deadline will instead cover all rental properties.<\/p>\n

High EPC ratings save money on energy bills, but upgrading efforts may price out smaller landlords and vulnerable renters<\/h3>\n

With almost 38% of homes being built prior to 1946, the UK has the oldest housing stock in Europe.<\/p>\n

This means that many homes have lower EPC ratings and will need upgrading to meet anticipated future regulatory changes. A home with a higher EPC rating is likely to be more insulated and efficient which will reduce energy usage and keep bills down.<\/p>\n

Phil Tennant, COO of Upstix, a cash buyer of homes and sister company of Outra, said:
\n\u201cRental growth remains robust, storm clouds are on the horizon for buy to let investors. With higher interest rates eating into profits, even as average rents continue to increase, the sector is looking markedly less attractive as we move further away from historically low rates.<\/p>\n

\u201cThe real danger lies just around the corner in 2028, when all residential lettings need to meet a minimum EPC rating of C. For many small landlords, finding the cash to upgrade their properties in today\u2019s tough environment may be the straw that breaks the camel\u2019s back.\u201d<\/p>\n

Some housing associations are already taking steps to meet the new EPC regulations<\/h3>\n

After securing funding from the\u00a0Social Housing Decarbonisation Fund (SHDF)<\/a> Wave 1 scheme, housing provider Orbit, the West Midlands Combined Authority (WMCA) and VINCI Facilities Building Solutions have begun work on upgrading the Energy Performance of 70 properties across the West Midlands.<\/p>\n

Wave 1 aims to upgrade more than 20,000 social housing properties that are currently below an Energy Performance Certificate (EPC) C rating.<\/p>\n

One of two successful bids submitted by Orbit, the programme will benefit from \u00a31.4m in SHDF funding, along with an additional \u00a34.6m investment from Orbit, to provide more customers across the region with a more energy efficient home.<\/p>\n

Using retrofitting to improve properties’ energy efficiency<\/h3>\n

The scheme will take a deep, fabric first, retrofit approach<\/a> using energy efficient doors and windows, along with loft and wall insulation and some low carbon heating, to increase the energy performance of the homes located throughout the West Midlands. Work is scheduled to be completed by the end of June 2023.<\/p>\n

The programme follows the success of the Demonstrator project<\/a>, which saw Orbit and its partners successfully upgrade 69 poor energy performing social homes (EPC\u00a0rating D or below) in and around Stratford-upon-Avon.<\/p>\n

Creating sustainable communities that can meet new EPC regulations<\/h3>\n

Ted Pearce, director of strategic asset management at Orbit, commented: \u201cWe are delighted to be starting work on upgrading our next portfolio of homes in partnership with WMCA and VINCI Facilities.<\/p>\n

\u201cAs the cost of living continues to bite, it\u2019s now more important than ever that we reaffirm our commitment to taking the steps required to provide our customers in the region with more energy efficient homes and sustainable communities in the long term.\u201d<\/p>\n

Jeanette Hodges, head of carbon and operations added \u201cThis in-depth programme of works also plays a key role in delivering on net zero carbon targets and reducing carbon emissions, even within harder to treat homes. Committing to a deep retrofit<\/a> while customers remain living in their home is a complex undertaking, but we have learnt invaluable lessons from the Demonstrator project which will steer our approach and ensure our customers can soon begin enjoying the benefits of a more energy efficient home.\u201d<\/p>\n

\n<\/div>","protected":false},"excerpt":{"rendered":"

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