Labour’s drive to implement greenhouse policies in England is generating divergent reactions from homeowners and real estate investors within the country.
Edward Milliband, Secretary of State for Energy and Climate Change of the United Kingdom, green targets for landlords will drive Britain’s property market into a “frenzy” and worsen the housing shortage, experts have warned.
According to a report in the Telegraph, the government’s green program is aimed at overhauling controversial energy performance certificates EPCs as the energy secretary wants all rental properties to achieve a minimum standard of energy efficiency by the end of the decade.
Each certificate provides cost estimates for the improvements required to attain a higher grade. Data by The Telegraph found that it would cost between £18.5bn and £36.1bn to renovate the country’s 1.6 million private rental properties to meet net zero targets, excluding those unable to reach the C grade.
“The scope of renovations is substantial, with data indicating that enhancing eligible properties would cost more than £10,000 on average in 85% of local authorities. Notably, only 33 out of 347 local authorities have an average rating that meets the specified criteria.”
But proposals to favour homes with the “capacity to integrate with smart technology”, or green heating systems such as heat pumps, will leave landlords scrambling to renovate properties or sell up. Landlords could be expected to spend up to £10,000 on every property they own, which MPs and experts warn will drive many to sell and push up rents for tenants.
Currently, the “minimum energy efficiency standard” requires an E-rated EPC, however, new metrics may mean an entirely new standard, which “isn’t considered in much detail within the consultation”, Amy Cushing, of law firm Moore Barlow told the Telegraph.
Ms Cushing added: “As it stands, the consultation does not go into detail as to what the thresholds would be for each metric, so landlords do not know what standards their properties will need to meet.”
