Some Want EPCs Renewed Every Three Years—Ouch!

The UK’s leading energy assessment training provider, Elmhurst Energy, is calling for drastic changes to Energy Performance Certificates (EPCs). Their proposal? EPCs should support net-zero efforts and be renewed every three years. While their intentions may be good, can tax-drained, compliance-exhausted landlords really afford the extra cost? More landlords leaving the market would only worsen the supply-demand imbalance, making housing even more expensive and pushing more people into long-term renting.

Elmhurst Energy’s Key Policy Recommendations

Elmhurst Energy recently shared its vision for a reformed EPC system and proposed the following changes:

• EPCs must be redesigned to include the three Cs: consumption, cost, and carbon emissions.
• The Golden Triangle (cost, efficiency, and lifetime) should be applied to EPCs.
• EPCs should showcase the current state of the building.
• Energy efficiency awareness must be a priority.
• Assessment methods should be regularly updated.

By implementing these measures, qualified energy assessors could take on advisory roles, helping homeowners and businesses transition to renewable technologies. Elmhurst also stresses the need for the government to rebalance the tax structure to favor low-emission fuels over fossil fuels. The company advocates for using technology to measure real-time building energy consumption and heat loss, while also calling for a national standard for Net Zero buildings and independent certification for energy assessors.

Are EPCs Outdated and Ineffective?

According to Elmhurst Energy’s Managing Director, the current EPC system—developed 15 years ago—is outdated and unable to address today’s industry challenges. The company suggests modernizing EPCs to provide critical data on both forecasted and actual energy usage and carbon emissions.

Research Highlights Major EPC Accuracy Issues

The property industry has long been critical of EPCs, and fresh research has given landlords even more reason for concern. The Sunday Times published findings from Carbon Laces, which suggest that EPCs overestimate energy use by up to 344%. Despite these inaccuracies, EPCs remain a key part of legislation, impacting landlords and homeowners alike.

Carbon Laces analyzed over 17,000 homes, comparing EPC estimates with actual energy use tracked by smart meters over at least 300 days. The results were alarming:

• The average metered gas and electricity use was 125 kWh per square meter per year—91% lower than EPC estimates of 239 kWh/m²/yr.
• The lower the EPC rating, the greater the overestimation.
• Properties with the worst EPC rating (G) were estimated to use 656 kWh/m²/yr, but smart meters showed only 151 kWh/m²/yr—a 344% difference.
• EPCs overestimated carbon emissions by 20% for C-rated homes and by 308% for G-rated homes.

EPCs for New Builds: Even More Inaccurate?

The Sunday Times report further revealed that EPC discrepancies might be even worse for new-build homes. Since EPCs are issued based on design data rather than real-world performance, they assume everything is installed perfectly—an assumption that does not always hold true.

The Impact on Landlords and the Lettings Industry

This issue is critical for the lettings industry. The UK government has pledged to reduce energy consumption in buildings and industry by 15% by 2030. Additionally, by April 2025, rental properties in England and Wales will be required to have a minimum EPC rating of C. However, landlords are currently restricted from spending more than £3,500 on energy efficiency upgrades to meet the minimum rating of E. There is hope, though—proposed changes suggest raising the spending cap to £10,000 and making a C rating mandatory by 2028. If implemented, this would allow landlords to make meaningful upgrades without excessive financial strain.