2. The EPC bar is being raised, but just not yet
The minimum standard for an EPC is currently “E” but it was always intended that, over time, the bar would be raised, and the Government has stated that it would like the minimum standard to reach “B” by 2030. However, it has been slow to legislate.
Fact: The Government consultation on the Energy White Paper closed in June 2021, but the results are still unknown.
This must mean that there is now uncertainty over both the final detail of the proposed changes and the target dates for implementing any change.
While it is wise to have a contingency plan that anticipates the future trajectory, it may be unwise to incur significant expenditure that is designed merely to ensure compliance with future laws.
This does not mean that investors and asset managers should ignore the compelling reasons for improving the energy efficiency of buildings, but it does confirm the need for a tactical approach to ESG and real estate.
Talk to Charles Woollam about your long-term ESG strategies.