Energy Efficiency & Properties in North Devon
Further to last week’s article on the EPC regime generally, this article seeks to discuss how potential changes will specifically affect the North Devon property market.
Making rural properties and country cottages energy efficient within the Minimum Energy Efficiency Standards (MEES) regime presents unique challenges. Rural properties and country cottages are often older, historic buildings that may have been constructed with traditional building materials and methods that are not considered to be energy-efficient. These buildings may also be listed or have protected status, which can restrict the types of energy efficiency improvements that can be made. In this article, we will discuss the problems with making rural properties and country cottages energy efficient.
The current Energy Performance Certificate (EPC) regime for residential let properties in the UK requires landlords to provide a valid EPC certificate with a minimum energy performance rating of E or above to prospective tenants before they move in. The EPC certificate provides information on the energy efficiency of a property, including the estimated energy costs and carbon emissions, and provides recommendations for improving the energy efficiency of the property.
Difficulties in Retrofitting Historic Buildings
Some rural properties and country cottages are historic buildings that may be listed or have protected status. This can make retrofitting the building to improve its energy efficiency challenging. The use of traditional building materials and methods may also make it difficult to install insulation or upgrade the heating system without affecting the historic fabric of the building. In some cases, the installation of modern heating systems or insulation can be detrimental to the building's appearance and value.
Whilst listed buildings can benefit from exemption from the MEES regime, public demand for properties to be “green” and rising energy costs will add pressure for all buildings to be more energy efficient.
High Costs of Retrofitting
Retrofitting rural properties and country cottages to meet the MEES standards can be expensive. For example, installing insulation or upgrading the heating system can be costly, especially for older properties that may require extensive renovations to improve their energy efficiency. The high costs of retrofitting may deter property owners from making the necessary improvements, particularly if they are not renting out the property or are unable to pass the costs onto tenants.
Does an EPC accurately reflect what it is like to live in a particular building?
There is also some concern that the EPCs fail to take into account the subtleties and realities of living in a period property. Property constructed from cobb (for example) may have no cavity walls and may not be suitable for external cladding (which may reduce the “breathability” of the walls) but the reality is that living in a cobb cottage is often very much warmer than in a building constructed in a modern way which reduces the need for heating. We are hearing that many cobb properties are receiving a low EPC rating, which does not reflect the reality of living in the property, and the certificate will still contain a recommendation that the property be insulated with impractical cladding that may cause damp.
Making country cottages - like those in North Devon - energy efficient within the MEES regime is often not straight forward. The issues highlighted above are just a few of the issues that property owners may face. Property owners may need to explore alternative energy efficiency measures or consider alternative approaches to retrofitting, such as installing biomass or heat pumps, to meet the MEES standards while preserving the historic character of the building. Ultimately, the challenges of making rural properties and country cottages energy efficient within the MEES regime highlight the importance of a tailored approach to improving energy efficiency that takes into account the unique characteristics of each property. Can the EPC calculation criteria (as they stand) handle these nuances?
The King’s Speech 2023
The UK Property market and landlords have been preparing themselves for the proposed legislative changes to the EPC regime for residential let properties in the UK. These included raising the minimum energy performance rating from E to C for new tenancies from 2025 and for all tenancies from 2028. The proposed changes were aimed at improving the energy efficiency of rental properties and reducing carbon emissions. Landlords who fail to meet the minimum energy performance rating would have faced a penalty of up to £30,000 or up to 10% of the property's value. However, last month (November 2023) in The King’s Speech it was revealed that the government would not be proceeding with the proposal to force private landlords to achieve an energy performance certificate (EPC) rating of C or above at this time. As mentioned in our earlier article, proposals such as this depend on which political party is in power and, with a general election expected next year, we will need to watch how the proposals from across the political spectrum are shaping up.
The Effect on the Local Property Market
In North Devon there is a high number of old cottages, compared to the rows of terraced houses we see in the cities. There is also a higher proportion of second homes than the national average. If changes come in that compel the owners of these cottages to pay a £10,000 bill to improve the energy efficiency of their properties, one wonders whether we will see a large number of properties come up for sale to try and beat the changes. Will this make them less desirable?