EPC Energy Certificates - stuck at C (what about 2028?)

[jamjar22]

Hi,

I've been looking at EPC Energy Certificate reports online for various properties to potentially purchase.

I noticed that some older properties have a current energy rating of C. However, after suggested improvements they remain in the C category (according to the report).

By 2025 I understand that let property must be C. And by 2028 they must be B.

Does that mean some older C category properties (which have hit a ceiling according to their respective report) will become duds by 2028 and unsellable?

Many thanks,

Shaun

[jpucng62]

The proposed legislation, as yet unconfirmed, is that for new tenancies the EPC must be a C by 2025 or possibly 2026 & that by 2028 all tenancies will require an EPC C. There is no date yet for EPC B.

Any property that does not have a recent EPC may find the rating changes when it is redone as the algorithm changes regularly.

The Govt is proposing that all mortgage companies get their average lending portfolio to a C so it may become harder to get a mortgage on a property below a C in the future but this is just talk at the moment.

Bottom line, only buy something that is comfortably a C or can easily get there - ie CWI, GCH, DG.

[ash72]

A rating on B would be extremely difficult to obtain on some properties, this may be applied on new builds. In any case i would suggest if you purchasing a property, then as long it has an E rating don't do anything, as the proposal may be that if you want a C you need to spend at least 10k so I would wait until then and spend the money, as if you spend it now and the legislation comes in you may have to make an additional payment of 10k.

[Hudson01]

If it did ever go to a B i would suggest that most of the BTL properties in the UK would be un-letable. It will kill the whole PRS.

The current method for the caluclation of the rating is so far out of whack with reality that we see properties that were a D becoming an E and a C becoming a D..... It is all over the place at the moment, I would only look at something that is already a C but that does not guarantee it will stay that way when it is re-assessed !!!!

I await the govt to decide what will happen then i will make my decision on what to do...... it is looking like i will be selling all my properties.

[Claymore]

I wonder what the legality of the ECPs are? Assuming you are a D and on paper, you are struggling to get a C.

Would you be taken to COURT. If so, would the case simply be thrown out because landlord argues, for example, the kitchen extn ceiling is insulated. Where as the report has reduced the rating by stating 'assumed' no insulation.

In some situations, I can't help but think EPCs aren't worth the paper they are written on.

[jpucng62]

Claymore,

I think you just get a fine of up to £30k from your LA.

Its not about the truth, its about the piece of paper you hold!

[Hudson01]

Its not about the truth, its about the piece of paper you hold!

Exactly, in the end we cannot fight this, if the govt decides it's a C (for now) then just like any other business we as owners have to decide if the return on our investment justifies spending X thousands of pounds retro fitting all manner of insulation and at the same time re-housing the tenant whilst the works takes place .... or...... we sell and and cash in.

Each of us will have a different viewpoint and of course be in a different place in our lives (retirment coming up etc). I will be selling but i respect others views if it works out for them.

[Yorkie2020]

Looking at the amount of houses that we have, we can not afford to pay 10k per house to bring them to a C from a D, so some will have to be sold. Most houses are in Yorkshire, so that is over 2 years rent for each house!!! I think that Boris the clown only sees London and forgets about the rest of the country. I really hope that what is left of the Tory party kiks hiss ass out of the door soon. He is a total idiot. How can this clown be in charge of the UK?

[Hudson01]

. He is a total idiot. How can this clown be in charge of the UK?

Because a large number of idiot voters made it possible for him to be the PM.

Also keep in mind that even if Boris is not the '' Boss '' the labour party will not change this aspect of the PRS, there are net zero targets to meet and as LL's we are right in the firing line, a change of party or leader will not change this outcome...... i do feel our time is up, and only those with the very energy efficient properties will make it, for the rest of us it is a case of being realistic and cashing in.

[Codger]

We now need a referendum on net zero lets call it nexit!

[Berlingogirl]

"Does that mean some older C category properties (which have hit a ceiling according to their respective report) will become duds by 2028 and unsellable?"

I don't think they will become unsellable but I think the market will be flooded with 'duds' by 2028 and for years after as landlords sell and due to the amount of time it takes to evict a tenant.

I expect there to be a housing crash with typical Victorian terraced houses (2 up 2 downs) becoming dirt cheap, leading to people such as first time buyers buying one of them and doing it up before moving to the next category up (e.g. an older 3 bed semi). This will lead to 3 bed semis falling in price due to them being less financially desirable, leading to the next category up (e.g. a more modern 3 bed semi) falling in price.... and so on.

Where are the tenants of the 'duds' going to live? Who knows? Overcrowding relatives and friends houses? Living in tents like you see in America? I'm sure some tenants will buy their rental which is good for them, but the most vulnerable tenants will be homeless and it will be the fault of the governments ill thought out legislation.

I feel a big rant coming on now..... grrrrrrrrr.

[Hudson01]

I don't think they will become unsellable but I think the market will be flooded with 'duds' by 2028 and for years after as landlords sell and due to the amount of time it takes to evict a tenant.


I feel a big rant coming on now..... grrrrrrrrr.

Not unsellable at all but the trick for the smart LL is to avoid the '' flood '', so i will not be leaving it until 2028, i am pencilling in 2026 for the sale of my first and then one a year after.

No big rant from me, the market has changed and is changing..... you either adapt or die, but in this scenario the adaption for me is to evict and sell, as i expect it to be for many thousands of other small LL's. I will be speaking with my tenants in 2025 getting them up to speed with my intentions and given what i know of them i doubt a section 21 (or whatever is around then) will be needed, they will look for something else and move.... but god knows where too and at what price !!!

[jpucng62]

My first Victorian Terrace goes on the market in Jan with 2 more to follow when tenants leave (or are asked to!). Electric properties will be next - unless the new EPC algorithm makes them lettable.

The ironic thing is, my daughter lives in her own three bed Victorian Terrace, new boiler & rads but no extra insulation, and her bills are £75pcm with approx £200 overspend each year. Now I know fuel bills are about to jump, but my point is that she can live in her house quite comfortably & cheaply, despite it being an EPC D. My tenant, in a modern house with EPC C walks around in a T shirt all winter and even has the heating on in the summer. So regardless of what the EPC is, the carbon emissions is about how the heating is used not what the piece of paper says. It is entirely possible to live in a Victorian Terrace without destroying the planet but it is not possible to get the housing stock to EPC C without destroying the PRS!