Date Published 06 December 2024
The Government is consulting on a number of big changes to EPC rules in its drive for net zero. In an article out today in The Negotiator is was reported that government is to reassess the way the EPC system works and it has begun a consultation process on the changes, some of which could have serious consequences for both sales and lettings agencies.
The accuracy and validity of EPCs have long been called into question. In response, the government says it wants to make EPCs more useful, complete and understandable.
Complete picture - It proposes using multiple metrics to provide a more complete picture of a building's energy performance. These are:
Energy cost: helping individuals understand the financial implications of a building's energy efficiency and make informed decisions about potential improvements
Carbon: an estimate of the carbon emissions arising from the energy used in the building
Energy use: will offer insights into overall energy consumption and identify areas for energy efficiency improvements
Fabric performance: assessing the thermal performance of a building's envelope and promoting the importance of well-insulated, comfortable, and energy-efficient spaces
Heating system: providing information on the efficiency and environmental impact of a building's heating source and encouraging the adoption of cleaner heating technologies
Smart readiness: assessing a building's potential to integrate smart technologies that can optimise energy consumption and the ability of consumers to benefit from cheaper smart tariffs
The Government is also considering incorporating SMETERS, which measure actual energy use via smart meters against the prevailing weather conditions to give a more accurate picture of the amount of energy a building uses.
More frequent testing - There are also some big changes proposed for the sales and rental markets and these include:
Ending of the 28-day rule – buildings would require an EPC before they are put on the market.
Extending the scope of EPCs so that a valid one is required for an entire house in multiple occupation (HMO) every time a room is rented out.
Short-term holiday lets to require EPCs
EPC testing to be more frequent than the current 10 years
A valid EPC will be required for the whole period of a tenancy – i.e. property will need to be retested if its EPC runs out mid-tenancy.
The consultation will run until 26 February 2025 and the government says any changes will be introduced in the second half of 2026.