The true cost of energy efficiency certificates

The likely savings predicted by the introduction of Energy Efficiency Certificates that form the central plank of the looming Home Information Packs due to start on 1st June will be far less than predicted. The largest of the Property Aggregators, calculates that the payback for the production of the EPC documents could be as much a five years.

In a swift rebuttal of Housing Minister Yvette Coopers’ comments made to a vested interest group yesterday in London, the portal which sees over 90% of properties for sale in the Uk stated that far from helping home owners to save money by forcing all properties that are marketed to have a freezer style A-G rating the scheme would actually cost money.

Henry Pryor, spokesman for Primemove said “The Minister is suggesting that Home Information Packs will create greater transparency in the housing market and will drive costs down. The Energy Savings Trust calculates that householders could save around £300 a year if they undertook measures highlighted in the EPC. But we are told that these packs will cost around £300 to produce and that over 50% of them will be wasted due to the number of properties that never actually sell. Coupled with the costs of sending an inspector to each home and the acres of rain forest required for the reports I think it could take years to recover the cost of doing the EPC survey in the first place.

“Home owners rightly want to know how to make their homes more efficient but the EPC could easily be provided by energy companies for instance some of whom are offering £100 cash back to people who undertake work to improve their homes energy consumption. Ms Cooper says she wants the Pack to “speed up the house buying process by making it clearer for consumers what they are getting and paying for”. This is to be done by charging the seller who she doesn’t regard as a consumer of services for information that isn’t even required to be shown to a prospective buyer - unless they actually request it.”

Pryor continued, “With the housing market already vulnerable to an expected interest rate rises in the coming weeks and with deep skepticism from almost everyone involved in the property market including RICS, Law Society and NAEA, the suggestion that costly Energy Efficiency Certificates will somehow save money leads me to think that someone is trying to gain entry to The Magic Circle.”