Lettings agents will play a decisive role in helping landlords prepare for tougher Minimum Energy Efficiency Standards (MEES), an industry figure claims.
Dr Neil Cobbold, commercial director of estate agency software provider Reapit, said the new energy performance certificate (EPC) standards create both responsibility and opportunity for agents and brokers to educate landlords, signpost appropriate finance options, coordinate retrofit activity and use portfolio data more strategically to identify potential value in new investment properties and risk with existing stock.
Speaking after appearing on Eco Approach’s recent webinar, “Green homes – how can landlords prepare for stricter energy efficiency standards?” Cobbold said: “Agents have an important role to play. With access to advanced EPC reporting tools, they can easily identify the properties in their portfolio that need retrofitting, and they also have access to trusted contractors who can carry out the work.
“By partnering with specialist brokers, agents can further access advice on a range of financial products that allow landlords to improve the energy efficiency of their properties, giving landlords a professional support network to help them reach the higher EPC C standard.
“Agents who embrace this role could unlock a significant new revenue stream. With the cost of the PRS retrofit programme estimated at £24bn, those who combine technology with industry expertise stand to earn substantial commission while strengthening long-term relationships with landlords.”
Drawing on Reapit’s analysis of a representative sample of agency-managed PRS properties, he highlighted the massive scale of the industry’s obligation to attain energy efficiency, noting that 51.5% of private rented sector (PRS) homes in question were below EPC band C, with 17.4% rated E, F or G.
Reapit’s data indicates that around £24bn in retrofit investment would be required for privately rented homes in Great Britian to reach the government’s proposed standard. In England and Wales, PRS properties must achieve EPC grade ‘C’ by 2030, while under Scottish draft plans, landlords there have until 2033 to reach a similar standard.
During the webinar, Cobbold said a perfect storm of policy uncertainty, rising costs and limited retrofit capacity is creating ‘inertia’ in the PRS.
He said: “There is a nervousness over timeframes, which is creating a supply and demand issue, which in turn causes extra financial pressure for landlords who are looking for a solution. All of this uncertainty makes it more difficult for us to do what needs to be done – make these homes more energy-efficient and help people not only in making their homes better but actually taking them out of fuel poverty.”
He warned that ongoing uncertainty around Government consultations and enforcement continues to stall action. Without clear guidance on enforcement or exemption thresholds, many landlords are simply being advised to wait and see, resulting in a shrinking window for action, rising costs as landlords are forced to compete nearer the deadline for a limited number of skilled tradespeople, and increased compliance risk.
