NOVA NEWS EDITORIAL - OCTOBER 2023

Energy Certificates

HM Government recently announced a slackening of the proposed targets for Minimum Energy Efficiency Standards for rental properties.

All landlords should be aware of the requirement to have a valid Energy Performance Certificate with a minimum rating of ‘E’ for any property which is currently let. (Unless an exception has been obtained). This standard was due to be raised to a ‘D’ rating and ultimately a ‘C’ rating by 2028. This proposal has been shelved with no indication that any revised dates will be announced despite The Government targeting 2050 for net zero emissions. With this latter point in mind, the funding available on the boiler upgrade scheme has been increased, however a ground source or air source heat pump may not heat your home to the levels which any existing boiler does and there may need to be significant expense required to improve energy efficiency and reduce heat loss. We all want our homes to be more energy efficient, but this can come at a price which is not economically viable to many landlords or owner occupiers.

This is one of the reasons why many landlords are leaving the rental sector, that and increased legislative requirements. The housing stock is therefore reducing in size and rents are rising. I have been to undertake EPC assessments at a considerable number of properties which landlords are disposing of. I can quite understand why many of these properties are being sold as they are very often in a poor state of repair and requiring considerable expenditure to get them to a reasonable letting standard. Maybe some landlords will reinvest in better quality stock and the change in legislative requirements for energy efficiency standards may result in fewer of the existing rental homes coming onto the market.

There seem to be signs that the sales market may be gaining some stability with interest rates not increasing for the first time for many months at the last Bank of England meeting. Inflation is increasing at ever lower rates and this is beginning to feed through into more competitive mortgage rates. Let us hope the trend continues.

I recently completed my 1,000th Energy Performance Certificate assessment, a modest number for many Domestic Energy Assessors but another milestone for myself.

If you need your property assessing for sale or rental purposes please give me a call for a fee quote.

by Andrew Mason
Property Consultant