Page 8 - Gi_Dec2021Jan2022

industry & Government news

£330BN BILL TO MAKE UK The age of the UK’s housing stock is a

key factor, since 30 per cent of homes
built in England and Wales before the
HOMES ENERGY EFFICIENT Second World War carry an EPC rating
of E or below, and 47 per cent of those
built before 1900.
“The payback on many energy
improvements remains unattractive,
even if grants can be accessed to
underwrite some of the cost. The
estimated cost of upgrading a home
with an EPC D rating is £6,472 — but
with an average annual cost saving of
£179, it will take 36 years to pay back
the initial investment, according to the
English Housing Survey,” Savills said.
The National Residential Landlords
Association, which represents
landlords, has called for more
government help for landlords in
meeting the EPC level C target.
It pointed to data from the official
English Housing Survey showing that
one-third of private rented properties
were built before 1919, a larger share
than for any other type of tenure. Four out
LANDLORDS FACE EXPENSIVE RETROFITS of five pre-1919 properties in England
had an energy rating of D or worse.
THE COST OF BRINGING UK homes tenancies, estimating this would deliver Landlords would spend an average of
up to the energy efficiency standards savings of £220 a year on tenants’ £4,700 per property to attain EPC level
targeted by the government is £330 utility bills. The sector is awaiting a C, according to government estimates
billion, according to new estimates that government response to a consultation that assume a maximum cap of £10,000
suggest homeowners and landlords face on the matter, which closed in January. on landlord costs — its preferred policy
big bills and long payback times when As the UK hosted the international option. But the NRLA said the proposal
making recommended improvements COP26 climate summit, estate would remain “a pipe dream” since the
to their properties. agency Savills published research average net annual rental income for a
Ministers want all homes by 2035 to calculating the impact of recommended private landlord is less than £4,500.
reach a minimum level ‘C’ on a system improvements to the energy efficiency A poll this year of 750 landlords
of energy performance certificates of homes, including insulation, double by the buy-to-let lending arm of
(EPCs) that runs from A, the most glazing and replacing gas boilers, as Nationwide found that 35 per cent of
efficient, to G, the least. well as low energy lightbulbs and landlords were “not confident” they
Landlords face a tougher timescale, draught proofing. would be able to bring their properties
according to The Financial Times. The One fifth of all UK carbon dioxide up to the required standard, “not only
government wants them to ensure emissions are accounted for by due to a lack of available capital but also
homes reach level C or better for new residential homes, it said, with 70 a lack of awareness regarding what it
tenancies by 2025 and by 2028 for all per cent of this coming from heating. takes to achieve that C rating,” it said.

UK INDUSTRY HITS OUT AT GOVERNMENT with their Treasury counterparts to
find “practical solutions” to protect
SILENCE ON HELPING BIG ENERGY USERS them from further price shocks.
But Chancellor Rishi Sunak has
taken a tough line over any taxpayer
BRITISH HEAVY INDUSTRY has hit wall according to The Financial Times. support and the recent fall in energy
out at the government’s ‘deplorable’ Although gas prices have eased slightly, prices has eased pressure on ministers
silence after promising to help big contracts for delivery over the winter to intervene. “Nothing is imminent,”
users of energy cope with soaring gas remain near £2 per therm — a level that confirmed one government insider.
and electricity costs this winter. would push energy intensive businesses Sunak said in his Budget speech
Executives from some of the worst into the red. A year ago, the equivalent that he wanted to end the Covid-era
affected sectors have become convinced price stood at about 40p per therm. of massive state intervention: “Do we
that ministers have decided instead to In early October, the heaviest want to live in a country where the
play a game of brinkmanship and wait industrial energy users were told by response to every question is: ‘What is
to see whether the UK is hit by a harsh Business Secretary Kwasi Kwarteng the government going to do about it?’”
winter that could push companies to the that he would ask his officials to work Energy intensive industries, including

08

18/11/2021 11:28
News.indd 3 18/11/2021 11:28
News.indd 3