Govt. plans to target mortgages to EPC's could leave many homes unsaleable

davilown

NameUnavailable said:

Nobody else noticed this in the news? https://www.theguardian.com/environment/2021/oct/19/mortgages-tied-to-green-home-improvements-considered-by-uk

Bad enough in you own a house which has an EPC of D or worse but at least you are in control of any works required to bring it up to a C and therefore be mortgageable.

What if you live in a flat with a low rating? Will the freeholder be bothered that the leaseholders can't sell? Will they see it as a great opportunity to charge huge amounts for work to make the building more efficient (but with what obligation to ensure every flat gets a C rating or better?).

I'm looking at a flat which has a rating of E currently, the EPC says to get to a C rating I would need to install roof insulation and cavity wall insulation. Obviously as a leaseholder that would be impossible and it would be down to the freeholder to decide to do the works although even then it might not be possible as such work would be deemed 'improvements' and outside the scope of the lease which would only allow for maintenance.

Are the government on a crusade to trap people in homes they can't sell? What with the cladding scandal, upcoming fire safety regulations, new regulations about energy EPC ratings for rental property (minimum C rating) on now this news, they really are trying their best to make many homes into money pits or worthless.

I think the facts it’s in the guardian for red voters it’s not likely to happen. Same as when it’s sensationalise in the mail for the blue voters

Section62

davilown said:

I think the facts it’s in the guardian for red voters it’s not likely to happen. Same as when it’s sensationalise in the mail for the blue voters

As I posted earlier in the thread, a move to lending on EPC A-C properties in preference is already happening - on a voluntary basis - by Nationwide building society (and possibly other lenders?).

Where one goes, the others often follow.

NameUnavailable

davilown said:

NameUnavailable said:

Nobody else noticed this in the news? https://www.theguardian.com/environment/2021/oct/19/mortgages-tied-to-green-home-improvements-considered-by-uk

Bad enough in you own a house which has an EPC of D or worse but at least you are in control of any works required to bring it up to a C and therefore be mortgageable.

What if you live in a flat with a low rating? Will the freeholder be bothered that the leaseholders can't sell? Will they see it as a great opportunity to charge huge amounts for work to make the building more efficient (but with what obligation to ensure every flat gets a C rating or better?).

I'm looking at a flat which has a rating of E currently, the EPC says to get to a C rating I would need to install roof insulation and cavity wall insulation. Obviously as a leaseholder that would be impossible and it would be down to the freeholder to decide to do the works although even then it might not be possible as such work would be deemed 'improvements' and outside the scope of the lease which would only allow for maintenance.

Are the government on a crusade to trap people in homes they can't sell? What with the cladding scandal, upcoming fire safety regulations, new regulations about energy EPC ratings for rental property (minimum C rating) on now this news, they really are trying their best to make many homes into money pits or worthless.

I think the facts it’s in the guardian for red voters it’s not likely to happen. Same as when it’s sensationalise in the mail for the blue voters

It's been reported in all colours of newspaper. It's not scaremongering, it's government thinking.

NameUnavailable

Section62 said:

davilown said:

I think the facts it’s in the guardian for red voters it’s not likely to happen.

As I posted earlier in the thread, a move to lending on EPC A-C properties in preference is already happening - on a voluntary basis - by Nationwide building society (and possibly other lenders?).

Where one goes, the others often follow.

In that case why does the government have to step in?

Section62

NameUnavailable said:

Section62 said:

davilown said:

I think the facts it’s in the guardian for red voters it’s not likely to happen.

As I posted earlier in the thread, a move to lending on EPC A-C properties in preference is already happening - on a voluntary basis - by Nationwide building society (and possibly other lenders?).

Where one goes, the others often follow.

In that case why does the government have to step in?

The government isn't stepping in.

That is made clear in the article you linked to in your original post.

NameUnavailable

Section62 said:

NameUnavailable said:

Section62 said:

davilown said:

I think the facts it’s in the guardian for red voters it’s not likely to happen.

As I posted earlier in the thread, a move to lending on EPC A-C properties in preference is already happening - on a voluntary basis - by Nationwide building society (and possibly other lenders?).

Where one goes, the others often follow.

In that case why does the government have to step in?

The government isn't stepping in.

That is made clear in the article you linked to in your original post.

Did you read it? I'll copy the first paragraph;

The government is exploring plans to link mortgages to green home improvements by imposing targets for lenders, to help decarbonise the UK’s ageing and leaky housing stock.

Section62

NameUnavailable said:

Section62 said:

The government isn't stepping in.

That is made clear in the article you linked to in your original post.

Did you read it? I'll copy the first paragraph;

The government is exploring plans to link mortgages to green home improvements by imposing targets for lenders, to help decarbonise the UK’s ageing and leaky housing stock.

Yes, see my post on 20 October at 7:09PM which couldn't have been written if I hadn't read the article.


A more representative assessment of the situation is in the quotes I included in that post, which for convenience I'll repeat here -

Measures being considered include voluntary targets for banks to improve the average energy performance certificate rating of the homes in their lending portfolio to at least band C by 2030.

Those targets could become mandatory “if insufficient progress” were made, according to the documents.

I've amended the highlighting in the paragraph you quoted above, along with the key words in my quote, to illustrate the point that the article makes it clear that the government isn't 'stepping in'.

(Or rather, as clear as it usually gets in Guardian/Mail reporting of governmental policy initiatives)

peterhjohnson

annabanana82 said:

Years to pay back 32

Exciting, isn't it? 

Murphybear

martindow said:

Niv said:Mine is 400 yo and part cob and obviously no cavity walls etc. I think a D rating would be an achievement!

I would imagine tht a thick cob wall could have quite good insulating properties.

It does.  We lived in a Devon farmhouse with 3 ft thick walls, warm in winter and cool in summer. There was a wood burner with plenty of wood the previous tenants had left.  Doing accurate EPCs can be quite difficult.  

Crashy_Time

NameUnavailable said:

Section62 said:

NameUnavailable said:

Section62 said:

davilown said:

I think the facts it’s in the guardian for red voters it’s not likely to happen.

As I posted earlier in the thread, a move to lending on EPC A-C properties in preference is already happening - on a voluntary basis - by Nationwide building society (and possibly other lenders?).

Where one goes, the others often follow.

In that case why does the government have to step in?

The government isn't stepping in.

That is made clear in the article you linked to in your original post.

Did you read it? I'll copy the first paragraph;

The government is exploring plans to link mortgages to green home improvements by imposing targets for lenders, to help decarbonise the UK’s ageing and leaky housing stock.

Political cover for falling house prices if (when) rates rise?