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UK Government, EPC, and Net Zero

How and Why the UK's "Net Zero Strategy: Build Back Greener" Backfired on its own EPC rating goals for 2028 and Why You Don't Need to Worry about the EPC (C) Rating on Houses in the UK!

A few years ago, Net Zero targets were created by the Climate Change Committee (CCC), the UK's independent climate advisory body.

The "Heat & Buildings" decarbonizing rules, such as "Setting long-term regulatory standards to upgrade Privately Rented Homes to EPC C by 2028 and considering setting a long-term regulatory standard for Social Housing, subject to consultation," caused some investors to shy away from good opportunities, even when we tried to inform them of how the EPC (C) rating would not be achieved due to a fair amount of facts.

Yesterday, the UK government, along with the Prime Minister, released new updates about the steps towards Net Zero commitments. As expected, the EPC (C) was not approved. The government note says, "Scrap policies that force landlords to upgrade the energy efficiency of their properties, but instead continue to encourage households to do so where they can."

But why didn't it go through?

The Net Zero targets from the Government have commitments that contradict each other and make the whole system unsustainable.

The ambition for an EPC (C) rating goes against their target for household heating systems, where it incentivises homeowners to add new greener options like electric heating, which is not the best option for landlords and their tenants due to the current UK conditions. Electric heating systems are not only expensive to switch to, as the bills can increase threefold for anyone living in the property, but the new heating system itself also lowers your EPC rating away from the desired EPC (C).

Before the Government brings energy costs down as proposed in the "Net Zero" targets, switching from the traditional Gas Boiler is not a suitable option for landlords and homeowners. It is irrational to expect that people will spend £10-£15k from their own pockets to convert houses built decades, if not centuries ago, to an even more expensive option in many ways.

Speaking of the next big elephant in the room, the switch boiler system has now been pushed to 2035, and there is no reason to worry or scare off any savvy investor. We are talking about 12 years from now when those rules may or may not exist. And honestly, gas boilers can last 10 to 15 years and often come with a ten-year guarantee. So you should be covered until 2035.

We always strive to advise our investors in the best possible way, and we are pleased to have many investors who can rely on us for updates on the UK Property Market and predictions regarding property news.

If you would like to invest in the UK Property Market, please get in touch with us.


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