Energy Performance Certificate's (EPCs)
An EPC is an Energy Performance Certificate (EPC) and measures the energy efficiency of a property on a scale of A-G, with A being the most efficient. EPCs were introduced in 2007 and are a legal requirement for a building to be sold, let or constructed. Once obtained, an EPC is valid for 10 years.
The certificate provides recommendations on how to improve the property’s energy efficiency with a view to achieving a better result after improvements are made to help save money for whoever if paying the energy bill and help the environment.
The governments minimum Level of Energy Efficiency standard for all domestic private rented property is currently EPC rating of E, but the Department for Energy Security and Net Zero have been in consultation for some time regarding upping this to EPC rating of C and above, and have recently confirmed that "Subject to parliamentary approvals" all rental properties will need an EPC rating of C or above by 1st Oct 2030.
Everyone at Readylet properties has understood for some time now, how important it is for the properties we sell to be as energy efficient as possible, so as part of ReadyLets refurbishment process we ensure the properties have the following-
Boilers+ A rated
Thermostatic radiator valves on radiators
Windows double glazed
Energy efficient light fittings
This means that the majority of the properties we sell already have EPC grade C/D. We also work closely with Durham Warm home Scheme, engaging with all the local initiatives available relating to the thermal enveloping of groups of properties an area at a time, which include various insulation options and external wall cladding (shown on the properties in the picture below) often fitted free of charge. Following the insulation work the properties will then usually achieve an EPC grade C or above.
If properties have an EPC of E or below, we refer the properties to an EPC improvement company that has worked on many properties for us. They are able to secure grants to improve the EPC ratings, which means that a whole suit of works can be carried out on these properties (subject to tenant qualification and property survey) at no extra cost to our buyers. Work done by this company normally improves EPC ratings to EPC grade B/C, and can include any of the following work
Internal wall cladding
New heating system – air source heat pump
Solar panels
Additional loft insulation
The majority of our tenants are on a low income and on universal credit, so we encourage the tenants to take advantage of any benefits available to them from the council and Green Deal Companies and also encourage tenants to use LED light bulbs. We are currently looking into fitting pendant light fittings that will only allow installation of energy efficient light bulbs.
Heat Pumps
We are keeping on top of current government guidance regarding Heat pumps as they are a hot topic (excuse the pun!). Along with the Increased minimum EPC rating of a C, the government are also intending to create a new EPC model known as Home Energy Model (HEM), which will measure properties on three criteria:
Fabric performance – how well the property retains heat through insulation, draught-proofing, and windows
Heating systems – how efficient the heating system is, with a priority for efficient systems like heat pumps
Smart readiness – whether the property can generate its own energy (e.g. through solar panels)
This means it may be beneficial for properties to be fitted with electric heat pumps as apposed to heated with fossil fuels, such as a gas boiler.
However we are not currently considering moving to heat pumps as standard yet, as they are still a comparatively expensive option at present and even though the HEM is due to be introduced from 2026, the government says it wont become compulsory until 1 October 2029 and how the new metrics will be calculated is still under consultation.
We understand that the government wishes to gradually move away from fossil fuel boilers in an affordable, practical and fair way, and have set a clear ambition for industry to reduce the costs of installing a heat pump, and to ensure heat pumps are no more expensive to buy and run than gas boilers by 2030, by which point they may naturally become the obvious, affordable choice when the time comes to replace their old boiler.
Source - https://www.gov.uk/government/news/plan-to-drive-down-the-cost-of-clean-heat & https://www.gov.uk/government/publications/heat-and-buildings-strategy
If you wish to discuss EPCs or Heat pumps in more detail, please contact us on 01483 663001.