Energy Performance
The Government has recently proposed new EPC requirements, to be brought in by 2028. But what exactly are these new requirements, what do they mean, and what effect will it have on architecture and property development? Here is a brief overview of the proposed change, and what effect it can have on your property developments.
What is an EPC Rating?
An EPC Rating (Energy Performance Certification) rates a property’s energy efficiency on a scale of A to G, with A being most efficient and G being the least efficient rating.
The scale was first introduced in England and Wales in 2007, and remains an integral factor for tenants and homeowners.
All properties must have their EPC Rating updated annually, and it is the landlord’s responsibility to provide tenants with a property’s rating.
What is the proposed change in regulation?
Currently, rental properties are required to have an EPC Rating of E or above. This is a significant difference which will have an effect on many properties nationwide.
The regulations are proposed as part of the Government’s drive to be Net Zero by 2050 (zero emissions).
What impact will the regulation change have?
Since the regulations were announced, 26% of landlords have already made energy efficient improvements, spending £8,900 on average. This trend is expected to continue, however this may lead to higher rent charges as a result, to cover the cost of these upgrades.
An increased maximum fine for invalid EPC Ratings is expected to be enforced, jumping from £5,000 to £30,000, putting even more pressure on landlords to make the necessary adjustments.
Energy-efficient and sustainable properties will increase in value as a result of the regulation change, and new builds will focus more on their energy output.
How much are landlords required to invest to improve their EPC Rating?
There is a maximum cost cap for complying with these standards, which is some relief for landlords and property developers.
Thankfully, the government has stated that landlords cannot be required to pay more than £10,000 per property, including VAT and outside funding, such as grants.
If the property still does not meet the minimum EPC rating after spending this amount on improvements, landlords can register an exemption on the property.
How can you increase your EPC Rating?
There are many ways to increase the EPC Rating of a property. By fitting LED lightbulbs, using double glazed windows, and insulating walls and roofs, energy efficiency will increase. At aThink Architects, we value the environmental friendliness and sustainability of our properties, and therefore we welcome the change to lower energy waste.
At aThink Architects, we believe that by changing our view of property development today, we can change the world of tomorrow.