After a period of silence, there is finally some news on how EPCs will be calculated and regulated moving forward. Here, we give you the key takeaways and discuss what the changes mean for landlords and the wider property market.
Towards the end of last year, the government scrapped the proposed changes to EPC regulations. The changes had required landlords to increase the EPC rating on their properties to a C or above by 2028, but Michael Gove himself commented this was “asking too much too quickly”.
In its place, the new Home Energy Model will be brought in to replace EPC ratings entirely. What does the Home Energy Model consist of, and what does it mean for landlords?
The new Home Energy Model
Energy Performance is currently based on the efficiency of heating a building using gas, as this has been the cheapest and most effective way to heat a property.
However, landlords have often found that their EPC rating has fallen by improving a property with electrical heating systems, such as heat pumps. Consequently, the current EPC system has been ineffective for quite some time.
The new Home Energy Model is instead focused on carbon emissions, with more in-depth assessments expected to give a better idea of how energy-efficient a property actually is. These assessments will also highlight what improvements are possible depending on the property type and age.
The Home Energy Model will use a new Future Homes Standard assessment, which will involve:
- Measuring all windows rather than relying on assumptions based on the property’s age
- Carrying out additional assessment of rooms in the roof
- Introducing a new age band for properties built from 2023 onwards
- Considering the use of power diverters and battery storage in conjunction with solar panels
- Recommending the use of heat pumps more frequently
Landlords will likely need to pay for these additional assessments. Fees and the time it takes for an inspection to be carried out vary based on the size and type of property, but for an average three-bedroom property, you can expect a £65 bill and a 30-40 minute assessment.
What the Home Energy Model means for existing EPCs
Assessors have confirmed they are already in training for the new system despite the government still being in its consultation stage for the new Home Energy Model.
Current proposals suggest the new system could be introduced as early as April next year. However, there is very little guidance on what will happen to existing EPCs, which have a ten-year lifespan.
Commenting on these proposals, the NRLA has stated:
“The NRLA backs the overall principles to decarbonise heating and is pleased a new system, less reliant on assumptions, is likely to be more accurate.
However, it does have concerns about the increased time it will take to carry out inspections, and the knock-on impact on landlords’ costs – at a time when landlords are under more financial pressures than ever.”
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