In its report on energy efficiency and the steps towards improving homes, Propertymark said proposals should be tailored to account for the different ages, conditions and sizes of properties.
The association also said there needed to be more clarity on how energy efficient properties were expected to be, the costs attached and the deadline to make changes.
Propertymark said: “Currently, there is no definitive target that has been legislated for, only recommendations from multiple reports. The UK and devolved governments need to develop a long-term policy framework and legislate clear targets for EPC ratings for people to implement energy efficiency measures.”
While there was no proposed deadline for owner occupied homes, the government was originally slating a 2025 target for landlords to improve new private tenancies and 2028 for existing tenancies.
Last month, housing secretary Michael Gove said this target should be “relaxed”, but no new timeframe has been given.
Propertymark also said property owners needed to be given financial incentives, adding that upgrading a home did not currently lead to higher house prices which would otherwise motivate people.
The association said until then, other incentives such as vouchers to cover the cost of retrofit evaluations, loans and grants to pay for improvements and allowing energy performance improvements to be offset against rental income could help.
It also suggested the ability to offset improvement costs against capital gains tax.
Propertymark recommended a national campaign to encourage people to retrofit their homes and suggesting introducing a property passport, which would be transferable across building owners and provide a long-term decarbonisation goal for a building.
This would capture the energy performance certificate (EPC) data, guidance on the actions needed as well as the actions already undertaken.
Raised interest in EPC ratings
When comparing responses to its 2018 survey, Propertymark recorded a greater interest in the EPC rating of a property.
Some 73 per cent of the associations residential sales agents said buyers sometimes showed an interest in a property’s rating, compared to 38 per cent in 2018.
Approximately 86 per cent of letting agents said prospective tenants sometimes showed a consideration for this.
Around 47 per cent of commercial agents said investors sometimes showed an interest in a property’s EPC rating, but 41 per cent said there was never any interest.
While interest was expressed, 47 per cent of residential agents said the EPC rating of a home never influenced a buyer’s decision to put in an offer, while one per cent said it always influenced the choice. Some 52 per cent said this was sometimes a deciding factor.
Residential sales agents did not feel that improvements added value, with 66 per cent saying upgrades added more value than they cost to install.
As for what could incentivise retrofitting, 72 per cent said government grants that cover a wider range of improvements and 67 per cent said larger grants. Some 68 per cent said allowing improvement costs to be offset against capital gains tax while 47 per cent said reducing the tax on the next property move based on improvements made.
Some 35 per cent said better rates on mortgages would prompt people to make their homes energy efficient.
More support will drive change
Timothy Douglas, head of policy and campaigns at Propertymark, said: “Our most recent research shows that, while interest in energy efficiency ratings is growing, a higher EPC rating of a property is not having a significant impact on the sale price in most instances.
“If governments and departments across the UK are serious about moving to net zero through reducing the energy consumption in homes and buildings, landlords and homeowners need a greater financial incentive and support to make energy efficiency improvements.
“The majority of our member agents agree that the best way to do this is to provide clarity on targets, enhance the role of EPCs and introduce grants that cover a broader range of improvements, which is especially important at a time when rising mortgage and other living costs are making it more difficult for many homeowners and landlords to foot the bill for these upgrades.”
