The talk of the late winter and early spring has been the skyrocketing energy prices. With this in mind, householders and taking steps now to reduce their usage. But there must be more to it than this. We expect volatility in the coming years as fossil fuels begin to run out and it becomes harder to find new pockets, and access existing ones.

To that end, energy efficiency must be our top priority. According to one recent survey, our residential properties across the UK are simply not energy efficient enough. Some have criticised the government for setting high standards but actively hindering progress.

Just One Third Match Minimum Rating

Government regulation states that properties must have a minimum EPC rating of C by 2028 (still going through Parliament, but it is virtually assured). Yet, in 2022, just one third of the UK’s rental stock meets that criterion. With six years to go, it may feel like there is plenty of time to achieve this. But the recent fuel crisis has shown how precarious this situation is. Plus, the recent IPCC report says we could reach the point of no return as early as 2030. Action is needed now.

The minimum rating doesn’t just mean lower prices, it means lower usage too. So not only will you pay less generally for gas, electricity, oil, and other fuel, but you will also experience less disruption when prices fluctuate hugely like they are right now.

The Numbers in Full

The current minimum rating for all five million of the UK’s rental stock is E. By 2028, that must rise to grade C. Yet just 1.6 million currently match this minimum future EPC requirement. The cost of bringing them all up to the minimum C grade is estimated at some £7,646 per property. The total cost of improving energy efficiency stands at £25.7bn.

The immediate issue is that tenants will be paying through the nose for energy generally. Now, with the current climate and the lifting of the price cap, that cost is going to increase exponentially until costs come down (if, indeed, they do).

Call on Government to Do More

Landlord representative groups welcomes steps to improve energy efficiency. It is better for tenants and doesn’t penalise the poorest. However, some criticisms remain. They have pointed out that legislative changes in recent years (Stamp Duty increases, tax relief reduction) have eaten into profit margins, straining resources for landlords, especially smaller ones. This makes instigating changes right now expensive.

Further, they pointed out that many of these changes don’t just hurt landlords – but tenants too. The longer higher fuel prices continue, the most financial strain there will be on tenants.