What’s happening with ‘carbon neutral city’ efforts and why?
Nottingham is aiming to become a carbon neutral city by 2028, meeting this target by reducing all carbon dioxide emission from direct and indirect energy use to net-zero.
Nottingham has reduced its overall CO2 emissions per capita by 57.7%, the highest reduction of any UK core city. During the second year of delivery, significant achievements have been made to help continue the downward trend of CO2 emissions in the city.
In the coming decade, Nottingham will have to improve the efficiency of all buildings to reduce the demand for energy. We will need to heat our buildings with low carbon and/or renewable heating, change our behaviours towards energy reduction and increase the adoption of energy efficiency technologies in both commercial and domestic buildings.
How are energy efficiency targets affecting Nottingham Landlords?
Landlords can no longer let or continue to let properties covered by the MEES Regulations if they have an Energy Performance Certificate (EPC) rating below ‘E’, unless they have a valid exemption in place. This is part of the ongoing Government drive to improve EPC ratings to a ‘C’ rating for all new tenancies by 2025 and all existing tenancies by 2028.
Note that a recent press release by the Daily Mail alluded to a 2028 ‘C’ rated deadline for both but this yet to be officially released by the government.
Some of the energy efficiency solutions proposed include changing to energy efficient electric heating units. The most energy efficient heating system is recognised as Dimplex Quantum for electric only properties – however, this is now not produced.
It is understandable that landlords would not want to invest in something that’s not going to make it on to the government’s white list.
Advice on upgrading to energy efficient heating systems for your residential property
Director of Belvoir Nottingham Group, Lloyd Rumbold, advises not to jump the gun with getting efficient heating systems put in place. He advises that waiting to hear from the government on this matter is presently the only real option for landlords as this is the only way to ensure that the heating system is ‘EPC approved’.
Predictions for the future & the implications of the Council’s plans
Lloyd has looked at the data and wants to give the following advice to homeowners, tenants and landlords of houses in the Nottingham City catchment area.
“Evidence suggests property is a good investment”
Records started in 1931 and over those records there have been 69 years of growth when it comes to property values. There have only been 15 years during that time where values have either stagnated or decreased. This evidence therefore suggests property is a good investment.
“The emphasis on C grade properties by 2030 could mean new rules being brought in such as being unable to sell properties that aren’t grade C”
Lloyd thinks from a government perspective – if your house isn’t a grade C or above, it could stop you from selling it. This would mean that the only thing you can do to move or sell your house is spend the money on increasing the efficiency and then selling it.
“Mortgage lenders are already being targeted to not have more than 50% of their borrowing on properties less than a C grade”
Lloyd predicts that in the future, we could be seeing mortgage lenders not able to have more than 50% of their borrowing on properties less than C – so Lloyd thinks the less efficient your property is the more expensive your mortgage will be. You will have to pay greater percentages to own those properties. If you want to buy the property, it will have to already meet energy efficiency standards unless bought through a commercial structure.
“Landlords getting older and wanting to sell their properties could be affected”
For the last 10 years, first time buyers have been getting older, at the moment, the average age of a first time buyer is 32. In 1960, the average first-time buyer was just 23 years old. Lloyd thinks that in the short term, landlords getting older and wanting to sell their ‘less than C grade’ properties will be affected.
He adds that he can see the value of homes below a C grade which chould boost first time buyer markets and result in first time buyers become younger once more.
To conclude
Big changes are on their way in terms of getting Nottingham to a carbon neutral city. Nottingham Landlords shouldn’t jump the gun with getting new ‘eco friendly’ heating installed in your rental properties until we hear more from the government about the approved standard. We will be keeping everyone up to date with everything regarding this situation.
