"Widescale environmental change across the housing market needs to be driven by the government and backed by leaders across many sectors to have any major impact."
A variety of issues around EPC ratings sit at the heart of this, especially within the valuation process and, to a lesser degree, mortgage rates. This was evident in a recent poll carried out in one of our webinar sessions which focused on legacy, new stock and the challenges/opportunities of moving to a low carbon built environment. This particular poll outlined that over two-thirds of property professionals (71%) believe valuers should reflect the EPC rating in value depending on a property’s EPC rating. In contrast 29% thought that they should not.
Further polls were taken during the webinar around EPC ratings and energy efficiency. When asked the question - Should lenders reflect the EPC rating in mortgage rates depending on the EPC rating? A small majority of 56% said yes, with 44% saying no. Six in 10 of respondents (59%) believed that the house buying public would pay more for an energy efficient property, while 41% thought they would not.
In addition, when asked who do you think should fund retrospectively required energy efficient measures? Only 3% suggested that the public should foot the bill, 24% implied it was the government’s responsibility with 73% highlighting that it should be a mix of public and government funding. It’s always fascinating to gather opinion from the people involved in these sessions and, largely speaking, they do tend to accurately reflect market sentiment.
It was also interesting to see that the poll indicated quite overwhelmingly that funding should be from a mixture of public and private monies and so this feels like an opportune time to mention ‘Green Deal’. Whilst these very two words are now quite tainted, it is possible that the scheme was just too ahead of its time; after all a cost neutral way to improve the UKs housing stock must surely have been a winner. In theory yes but, as ever, policy is only as good as its delivery. The principle was indeed quite sound, but not quite so was its delivery. It is really important to ensure policy makers learn from previous mistakes – exactly how that mix of public/private money is delivered is so important, those least able to finance this should not be left behind but equally the road to sustainable homes cannot come solely come from the public purse. Government has a significant role to play here – longevity is key. The revolution will not happen overnight, we’re in this for the long game. Policy needs to deliver longevity. Private money will only follow where confidence exists that Government policy is coherent, long standing and effectively implemented.
When further evaluating this issue, it’s evident that widescale environmental change across the housing market needs to be driven by the government and backed by leaders across many sectors to have any major impact. With this in mind it was encouraging to see a group of leading players in the housing, construction and energy sectors identify seven critical areas to fully decarbonise UK’s homes by 2050.
The panel called for the following key steps to be taken:
• Work hand-in-hand with industry to establish a roadmap to bringing the Future Homes Standard implementation forward to ensure that all homes are built with low-carbon heating and energy efficiency measures. Just a fraction of new builds are currently built to EPC A standard. Until this changes, we are still building new homes that are not fit for the future.
• Create new jobs in sustainable retrofitting: At present there aren’t enough skilled installers and tradespeople to retrofit all the nation’s homes. However, the construction sector cannot upskill until there is established demand. Government must work with industry to help stimulate demand and to create an ambitious skills strategy, which will provide good quality jobs across the UK.
• Make it fairly financed: Government could encourage consumers via a long-term commitment, including supplementary grant funding as a stimulus, and, critically, should help those who simply cannot afford to pay.
• Make property fit for the future: It is time for the EPC to become a ‘living document’, akin to a building passport, that reflects changes made to the home.
• Support sustainable homes with sustainable power: Great strides have been made in the decarbonisation of UK energy, and we keenly anticipate the release of the Heat and Buildings Strategy. Clean energy and heat are a key to any national retrofit strategy.
• Regulate green retrofitting: Consumers need faith in the quality of the work if they are to retrofit. The government should regulate to ensure that all installers undertaking ‘green home’ retrofits are Trustmark certified and compliant with PAS standards.
• A public information campaign that inspires: Inertia and misinformation is rife regarding green. It’s time for an inspirational public information campaign that helps people understand what is possible for their home.
Many valid and salient points are raised here. While we still have a long journey in store, the sooner we can integrate factors that will make a real environmental difference, the better. And we all have to take our fair share of responsibility in making this happen.
