In the third and final YourMoney.com special series on EPCs, we relay industry experts’ main criticisms of the scheme, EPC limitations and how reliance on them has grown in the last 15 years. As the government steps back on EPC rules, is now the time for drastic reform in a bid to meet net zero commitments or is it time to take an axe to them in favour of property passports?
Energy Performance Certificates (EPCs) have come under fire for being too simplistic. Critics argue they give homeowners inaccurate ratings, suggest irrelevant efficiency upgrades and reward gas heating systems – which are bad for the environment – with higher scores.
Whatever the perceived faults or limitations, EPCs are a cheap way of getting initial recommendations to help lower your energy bill, a welcome source of household support in today’s climate of high inflation amid the cost-of-living crisis.
But now could be the time to improve or remove the system.
Following Prime Minister Rishi Sunak’s announcement that minimum EPC ratings would be shelved for private rental sector landlords, this gives the industry and government breathing space to reconsider the way EPCs work and the role they play.
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Indeed, industry body the Royal Institution of Chartered Surveyors (RICS) swiftly made its stance clear.
“The government should also use this time to undertake a much-needed reform of the EPC methodology to ensure we accurately assess and incentivise energy performance improvements,” it wrote in a statement.
So, should the system be scrapped in favour of something new entirely? Or does the EPC offer a decent foundation and framework on which the government can build?
YourMoney.com investigates…
The ABC on the EPC
EPCs measure a home’s energy efficiency and rate a property from ‘A’ to ‘G’. ‘A’ is the most efficient and means the home is likely to have the cheapest energy bill while ‘G’ is the worst.
The certificate also offers recommendations to help households boost their rating and shows households how much carbon their property emits, although this isn’t reflected in the rating.
The EPC started life in 2007 as a tool to tell potential buyers or tenants how much they could expect to pay to heat a property. But now its use – and reliance on them – has grown, industry experts say the system needs reform if we are to improve the energy efficiency of our homes. This is a particularly important consideration as the majority of properties are rated ‘D’.