The Electronic Property Information Mapping Service (epIMS) claims some 95% of landlords do not know the rating of the Energy Performance Certificate on their properties.
So what can be done to shine a light on how landlords can see the EPCs they have, and improve their ratings in the year ahead?
How are EPC ratings calculated?
EPC ratings are graded alphabetically from A to G. But an important fact that has gone widely unreported is that there is actually a numerical points system at work below the surface. For example, a score of between 92-100 SAP points gives a rating of A, 81-91 points gives a rating of B, and 69-80 points gives a rating of C.
This is important knowledge for landlords because it means that a property with a rating of D could be just one point, and therefore one minor improvement, away from upgrading to a C.
Majority of landlords unaware of EPC calculation methods
Despite this, only 5% of landlords know how their property scores when it comes to these numerical points.
Research fromepIMS, the EPC and energy efficiency platform developed for landlords, reveals how many EPC points landlords can expect to add by carrying out some common energy efficiency improvements.
The easy wins
If a property is on the very edge of breaking into an improved EPC rating, there are a number of small improvements that can be made to add the required couple of points to push the overall score into a higher rating.
For example, adding a hot water cylinder insulation adds an average of +1.7 points; a hot water cylinder thermostat adds +2.4 points; and installing low energy lighting adds an average of +1.1 points.
Prioritise points added rather than energy efficiency
It might sound counterintuitive, but adding the most sustainable features to a home isn’t always the best way to add points and therefore improve an EPC rating.
For example, a BIOMASS boiler is often said to be the most eco-friendly way of heating a home, but in terms of EPC points, they don’t score as highly as more traditional heating methods.
In fact, a standard condensing gas boiler adds an average of +23 points, whereas a BIOMASS boiler only adds +12 points. So switching from a gas boiler to a BIOMASS boiler would actually reduce EPC points despite the latter being considered the cream of the crop from an eco standpoint.
Alternative energy is one way of adding a lot of EPC points with solar panels adding an average of +9.91 points, whilst a wind turbine can add +6.39 points.
Improved insulation is another great way of adding EPC points. The go-to option is often double glazing, but not only is it expensive, it only adds an average of +3.3 points.
Bigger jobs such loft insulation (+4.9 points) and wall insulation (+7.7 points) can be far more beneficial, however, it is room in roof insulation (+9.91 points) that is the most effective measure when it comes to improving an EPC score.
The chief operating officer of epIMS, Craig Cooper, says “the push for EPC improvements is on and by 2030, landlords will be expected to hold a minimum C rating. Whilst the estimated cost of achieving a C rating comes in at around £8,000, many landlords may find that they pour a far greater amount of money into their property without seeing any real improvement to their EPC score. That’s because the vast majority remain unaware that an EPC rating is based on a points system and understanding this is the first step to making home improvements that will actually make a difference when it comes to improving an EPC score.
Of course, this knowledge is only useful if you know what score your property currently holds and exactly how many points you’re going to get from each particular efficiency upgrade available. That’s why we’ve developed epIMS and our platform utilises advanced algorithms and AI to calculate exactly how a property can best reach the next EPC rating band.
Landlords are delaying EPC upgrades
Over half of landlords who own properties with an Energy Performance Certificate (EPC) rating below C are putting off work to upgrade their properties.
This is due to the later deadline that’s in place, as all rental properties must have an EPC rating of at least a C by 2030.
It was previously 2025, before being shifted to 2028, and now 2030.
Rob Stanton, sales and distribution director at Landbay, which conducted the research, said “It’s encouraging that half of our landlords have properties at C rating or above. But those landlords who don’t, and who are putting off upgrading their properties, need to be careful. Kicking the can down the road may mean that, with a national skilled worker shortage, landlords risk not getting the work done in time, They may face significant fines as a consequence.
As a buy-to-let lender we are here to help should landlords need extra financing for upgrade work. Demand for decent rental properties already continues to outstrip supply, with many tenants ready and willing to rent across the country. We remain committed to doing our bit to help, innovating to meet the needs of landlords.”
Some 58% of landlords with properties currently rated below a C will wait until nearer 2030 to do the work, with only 18% saying they would do upgrades as soon as possible. Some 6% won’t make any changes at all even though they intend to continue renting.
Just over a third of landlords, 35%, said their properties fell below C, with half being above C.
A landlord told Landbay “I think the EPC ratings are somewhat unrealistic for most given that the council themselves also have properties in need of upgrades.”