EPC target possible but not without challenges

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91.5% of properties with a known EPC in the UK could meet future target of band C or higher, according to data from Landmark Information Group.

The latest data shows that the sector could meet the government’s target to increase the Energy Performance Certificate (EPC) rating for residential properties. However, as less than half (49%) of those properties are in possession of a valid EPC, the transition comes with timely and costly challenges, the firm says.

Landmark’s data reveals that out of the properties that do have a valid EPC, more than half (55%) fall below the target of band C or lower, and if all suggested changes recorded in the EPC were made to properties – switching to low-energy light bulbs, adding wall insulation, installing double-glazed windows, and switching to condensing boilers – 91.5% of existing EPCs could meet the target of band C or better. Whilst the analysis of EPC data suggests it would be possible, there are other factors to consider including planning constraints, conservation areas and budgets, which means it would be challenging for the sector to achieve, Landmark warns.

The report estimates that as many as 20 million properties, which account for 66% of the residential housing stock, could be impacted. The findings show that the cost of improving ratings varies depending on the current rating of each property. According to the report, the average cost of £39,381 to uplift an extremely inefficient property from band G to band C equates to nearly 11% of the average current value of a property.

Through the requirement of valid EPCs when properties change hands, property sales can help to drive change. However, given that approximately 1.1 million transactions took place in 2022, and assuming sales continue at the same annual rate, it would take 18 years to retrofit the estimated 20 million properties with an EPC rating below band C.

Chris Loaring, managing director (legal), Landmark Information Group, said: “In the quest for a more energy-efficient future, the path is marked with challenges. While 91.5% of properties show potential to reach higher EPC ratings, the real question remains ‘how?’. With a significant percentage of homes lacking EPCs and a daunting task of upgrading millions from low bands to C, doubts linger on the industry’s capacity to meet government targets.

“The hope for a sudden surge of change raises questions of sustainability, while the confidence in legislative timelines and the finite nature of the retrofit market pose substantial hurdles. Bridging the gap between potential and reality demands not just ambition but a strategic and sustained effort, as the clock ticks towards an uncertain 2035 deadline.”

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