EPC ratings an issue for commercial and domestic properties in London?

This phrase accurately encapsulates the UK government’s commitment to the country’s long-term investment. The establishment of the City of London’s Green Finance Initiative in 2016 was a significant step forward in this direction. Green Finance is just one aspect of the government’s environmental initiatives; it has also pledged to increase the country’s energy productivity by 20% by 2030 as part of international efforts to ensure the planet’s environmental security. Improving energy efficiency is a key component of reaching government goals, but many business and residential property owners in the capital are failing to do so.

EPC ratings in London

According to a 2016 assessment published by the Association for the Conservation of Energy, London’s EPC ratings must be improved if sustainability goals are to be attained. According to the survey, 37% of commercial premises in London have an EPC rating of E, F, or G, with domestic houses faring no better, with EPC ratings of E or below accounting for about 25% of all domestic properties in the city. These ratings are presented on the Energy Performance Certificate (EPC) for the property and reflect how energy efficient it is. The best possible rating is A, while the lowest possible rating is G. Steps are being done, however, to address London’s energy efficiency challenges.

How can we overcome London’s energy efficiency issues?

In April of this year, the Minimum Energy Efficiency Standards became legislation. Landlords of household and commercial properties are not entitled to rent out or renew a lease if the property has an EPC rating of F or G, according to the requirements. The new laws’ reach will be expanded on April 1, 2033. Landlords will no longer be permitted to rent out any property that gets one of the two lowest ratings after this date; this includes homes that already have a lease agreement in place.

The new Minimum Energy Efficiency Standards should prompt landlords in London to make modifications to their homes’ energy efficiency. With the establishment of a £500 million corporate energy efficiency fund, businesses are also being encouraged to make improvements (MEEF). Sadiq Khan, the Mayor of London, made the announcement on July 9, 2018.

The fund is the UK’s largest of its kind, with the goal of assisting public sector and small business organisations in funding carbon-reducing activities such as alternative energy sources and electric car charging stations.
Amber Infrastructure Group is in charge of the fund, which is primarily funded by the European Regional Development Fund.
The establishment of the MEEF not only supports the government’s energy efficiency goals, but it also backs up Sadiq Khan’s claims. His goal is to reduce carbon emissions in London by 60% by 2025, compared to 1990 levels, and to achieve zero carbon emissions by 2050.

These measures come on top of the City of London’s vow that by October 2018, all of its buildings would be powered by renewable energy sources. Solar panels on building rooftops, wind power, and clean energy from the grid are examples of these sources. Even while this only applies to a small portion of the greater London region (a little more than one square mile), it represents a significant commitment to a more energy-efficient future.

The London housing market and energy efficiency ratings?

It’s no secret that housing prices in the capital are declining. The collapse of the buy-to-let sector as a result of new tax rules has contributed significantly to the drop. According to Right Move, the average price of starter houses (those with one or two bedrooms) has dropped by roughly 3.5 percent in the previous year. Although this appears to benefit first-time buyers, analysts believe that the market will stay stagnant until at least 2022. It’s difficult to say how much a rise in energy prices due to inefficiency will have. However, no new house owner wants to be confronted with the potential of hefty bills on top of other expensive London living costs.