Archived press release

Energy Performance Certificate introduction welcomed

1 August 2007

But Government must give incentives for homeowners to go green

The introduction today of Energy Performance Certificates (EPCs) as part of Home Information Packs (HIPS), has been warmly welcomed by Friends of the Earth as a vital measure to help cut carbon emissions from UK homes.

But the environmental campaign group says the Government must urgently extend the scheme to cover all homes, and introduce measures in the Pre Budget Report that encourage home-owners to act on the information provided by EPCs to make their homes more energy efficient.

From today (1 August) anyone selling a property with at least four bedrooms must obtain a Home Information Pack (HIP). This includes an EPC which will assess the property's energy efficiency and recommends cost-effective measures to improve it. It is hoped that the move will help cut the impact that homes €" which are responsible for around a quarter of UK carbon dioxide - have on climate change.

Friends of the Earth campaigner Dave Timms said:

"We're delighted that Energy Performance Certificates are now up and running, if only on some properties. This is a long overdue measure that is vital to tackle climate change and will help homeowners save money on their energy bills. The Government must urgently extend the scheme to cover all homes being sold."

"Our homes are responsible for over a quarter of UK carbon dioxide emissions. The Government must do more to help householders save energy and cut emissions. This is why the Chancellor should introduce incentives in this autumn's Pre Budget Report to make it easier and cheaper for homeowners to act on the information provided by Energy Performance Certificates."

Friends of the Earth is calling on the Government to:

1. Extend EPCs to cover all homes that are being sold. The Government delayed the introduction of Energy Performance Certificates (and HIPS) from their original 1 June launch because of a shortage of accredited inspectors and legal action by the Royal Institution of Chartered Surveyors. The measure is being phased in by size of property.
2. Introduce measures in this autumn's Pre-Budget Report to encourage homeowners to act on the information in their EPC. This should include:
   A stamp duty rebate for homeowners that make significant improvements in energy efficiency to a property within six months of purchase;
   VAT reduction for refurbishments which significantly improve a property's energy efficiency €" Refurbishment work currently attracts 17.5% VAT. It should be cut to 5%.
3. Persuade the EU to allow DIY energy efficiency measures €" such as lagging and insulation €" to be cut from 17.5 per cent to five per cent (the same VAT rating that heating is charged). This would end the bizarre situation where energy saving is taxed three times more heavily than energy use.
4. Strengthen proposals for a new climate change law. This should include ensuring that UK carbon dioxide emissions fall by at least three per cent each year, and that the UK share of international aviation and shipping emission s are included too. A strong climate change law would make it more likely for future Government's to introduce measures to cut emissions from all sectors, including homes.

Notes

Statistics on homes and HIPs/EPCs

EPCs are expected to cost about £100.
Over 1 million homes change hands every year.
Owner occupiers make up 70% of the housing stock
70% of the homes in existence today are expected to be around in 40 years.
27% of UK carbon emissions come from our homes.
8 million people don't have cavity wall insulation
6 million people don't have proper loft insulation
CWI and loft insulation cost about £250 each and the energy they save means that they pay for themselves in less than 3 years. Other measures such as solid wall insulation are more expensive and take longer to pay off, hence the need for an incentive.
Energy Performance Certificates are required as part of the EU's on the Energy Performance of Buildings Directive.
According to the Government the average homeowner could save up to £300 a year on fuel bills if they acted on the energy efficiency measures recommended in their EPC.

1. Gordon Brown speaking to the Green Alliance, 12 March 2007, said:

"And it is our job, I believe, to help make it easier for people to make more sustainable choices, providing practical help with, wherever possible, incentives in preference to penalties"

"In the last Pre-Budget Report, I announced that within ten years all new homes would have to be zero carbon, and I provided a stamp duty exemption as an incentive to get there. But new homes are only a small percentage of the total. So today I want to extend our ambition to all homes. Over the next decade my aim is that every home for which it is practically possible will become low carbon."

2. The Government has stated that at least 2000 accredited Home Inspectors and Domestic Energy Assessors are needed before a HIP and EPC is required on homes with 3 bedrooms, and that 3000 HIs and DEAs are needed for HIPs to be required on all homes. According to CLG there are now over 2200 inspectors and assessors accredited.

3. The history of mandatory energy rating of homes

Proposals for the mandatory energy rating of homes have been discussed in parliament since 1984 when Peter (now Lord) Walker first proposed that mortgage companies include energy efficiency advice with surveys.

House of Commons select committees in 1989, 91 and 93 called for energy rating of homes.

In the Parliamentary year covering 1997-98 256 MPs signed EDM 165 which called for energy rating and energy efficiency advice to be included in the home buying process.

The current measure is being brought into existence by the EU's Energy Performance of Buildings Directive which was signed in 2002.

4. Stamp Duty rebate
A 2005 study by Eoin Lees Energy estimated that a Stamp Duty rebate capped at just £800 could be taken up by 450,000 householders and would cost the treasury £350m.

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Published by Friends of the Earth Trust