The BPF have again urged the government to clarify their proposed raising of minimum EPC targets in new builds.
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The homebuilders federation have released a statement supporting updates to Energy Performance Certificate targets (EPC targets) but also that further clarity is needed
EPC targets are set to be reformed following an ongoing government consultation on the topic.
The current consultation is set to close on 2 May 2025.
EPC targets are set to rise
The government is currently proposing that the minimum energy efficient standard for privately rented homes in England and Wales rise to a C standard by 2030.
The aim of such a move is to increase energy and carbon emission savings in the built environment to deliver on the 2030 fuel poverty targets and carbon budget.
The current consultation follows on from a consultation that began in 2020, and gained little traction, to the BPF’s frustration expressed in a prior call for clarity.
Current statistics on the number of homes lodged on the Energy Performance of Buildings Register showed an increase of 2% in England and Wales in Q4 2024, from the same quarter in 2023.
On the government’s live table, England and Wales saw 1,666,137 lodgements, 514,762 of which had an EPC rating of D, the current minimum. 736,409 met a C standard, the proposed new minimum.
Mixed industry reactions to the proposal
Rob Wall, assistant director at the British Property Federation, said: “We welcome the opportunity to work with Government on the scope, detail, and implementation of the minimum energy efficiency standards (MEES) in the domestic sector.
“We fully support the drive to improve energy efficiency across the domestic rented sector, but given we have effectively lost four years, with the target initially suggested in 2020 but not confirmed, it will be challenging for all properties in the private rented sector to achieve EPC C by 2030. We would like to have seen recognition of the time lost reflected through a gentler trajectory, to provide the sector with sufficient time and support to carry out necessary work.
“The sector also needs certainty around the targets, essentially looking for confirmation that this will be the end target, rather than further targets being announced, as this can add to uncertainty and investment decisions.”
Wall also said: “Commercial and industrial buildings account for around a third of all building emissions. The sector has a critical role to play in tackling climate change. Yet the government continues to keep owners and investors in the dark about future minimum energy efficiency standards.
“Our research shows the scale of the challenge we face in retrofitting our commercial buildings, across all asset types and across the UK. The lack of a response to the 2021 consultation is hugely frustrating and is making a tough situation worse. The targets proposed in 2021 no longer look achievable, and we would call for the proposed interim EPC C target to be abandoned entirely.
“To be clear, we support higher minimum standards, and we are seeing improvements in the EPC ratings of commercial buildings. But progress is slow. If we are to have any chance of hitting an EPC B target by the early 2030s then we need clarity from government now.”
Dave Seed, managing director of Qube Residential, said: “Navigating and understanding the 12-week government consultation on boosting energy efficiency is important. Firstly, landlords should start by checking their property’s EPC rating through accredited assessors. Knowing this rating is pivotal for planning necessary upgrades in your properties.
“Typical improvements include insulation, heating upgrades, and possibly renewable energy installations. Even something as simple as installing double glazed windows can boost your EPC rating. your rating. Though, the cost will vary depending on the property. The timeline for initiating these changes depends on the final legislation but early action is advised to avoid penalties.
“I am concerned about the upfront costs landlords must bear, as we are once again shouldering the financial burden. However, I recognise the long-term benefits such as improved tenant relationships, increased property value, and a higher-quality housing stock. To make these upgrades feasible, practical support such as grants will be essential. That said, for older properties, achieving a higher EPC rating can be unrealistic, even with every possible upgrade.”
Chief operating officer of epIMS, Craig Cooper, said: “Landlords may have concerns when it comes to being forced to upgrade all of their properties to an EPC rating of at least C, but the nation’s dwellings have already been steadily improving year on year even without governmental pressure to do so.
“Advances in areas such as building materials and heating systems mean that energy efficiency in the home is improving as a matter of course.
“Our ability to understand how best to improve efficiency is also improving, with advanced technology such as AI now able to analyse a home and quickly identify its weak spots which can then be addressed in the most practical and affordable way.
“As such, landlords who are concerned about the time and cost required for upgrading their properties in order to adhere with the government’s proposed rules might actually be pleasantly surprised at how affordable it is, just so long as they approach the challenge in the most efficient manner.“
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