If you’ve tuned into EarthShot, you’ll have seen some of the innovative new solutions to tackling the challenges of climate change, explained. From sinks that reuse waste water, to large-scale insect farming to turn our food waste into fertiliser, it offers a much needed glimmer of hope that we can develop circular solutions to our global problems that have the potential to reverse some of the damage humans have done to the planet.
Prince William and his Earthshot Committee are calling the next ten years a ‘decade of action to repair the Earth’. But in reality, that action needs to start now, a little closer to home, whether you are a landlord, or a homeowner.
Energy efficiency matters to tenants
Current legislation means that if a property doesn't have a valid Energy Performance Certificate (EPC) rating of ‘E’ or above, then it cannot legally be let. With soaring energy prices a real problem for all of us, an energy efficient home is now on a higher proportion of prospective tenants' wish lists. Not only are we all becoming (rightfully) more environmentally aware when it comes to our properties, but for tenants, a higher EPC rating means lower bills, a decrease in the risk of mould and a warmer place to live.
More changes on the horizon for 2025
From 2025, the government has proposed that all rental properties will require an EPC rating of ‘C’ or above by 2025. Similar to the way in which previous EPC rating requirement changes have been rolled out, the new regulations will be introduced for new tenancies first, followed by all tenancies from 2028.
Given the predicted growth of the London buy-to-let market and popularity of staycation properties across the UK, property EPC ratings are certainly something buyers should be keeping a closer eye on, given the costs they are liable to incur to action improvements that will enable them to meet the lettings criteria.
The regulation changes are a step in the right direction, and hope to make homes more energy-efficient and reduce carbon emissions as part of the government target to be net-zero by 2050. The seriousness of the problem is echoed in the penalty increase for failing to have a valid EPC certificate, moving from £5,000 to £30,000 from 2025.
Achieving an EPC rating of ‘C’ will be more difficult than an ‘E’, particularly for older properties. The government has recommended a ‘fabric first’ approach, covering wall, loft and floor insulation. The installation of a smart meter is also recommended.
Energy performance investment is currently capped at £3,500 for landlords, but as the higher EPC rating will require a greater investment, the cap will be raised to £10,000. The government estimates that on average the improvement needed to reach an EPC rating of ‘C’ will cost landlords around £4,700. Landlords are encouraged to apply for the Green Homes Grant, which will fund at least two-thirds of the cost of hiring tradespeople to upgrade the energy performance of their PRS properties up to a contribution of £5,000.
Play an active part in the greener home revolution
Whether you're a landlord or a homeowner, many of us are continually looking for ways to greenify our homes. With soaring energy prices and recent fuel crisis scenes still fresh in our minds, this Winter is set to get us all thinking about how we can make changes to save money, as we wise up to the fact that we have to become less reliant on fossil fuels.