The Department for Business, Energy and Industrial Strategy is reviewing proposals for lenders to take responsibility for achieving an average EPC Band C, within their own portfolios, by 2030.
At a national level this requires an increase of a further 4.3 SAP points in just nine years, doubling the current annual rate of improvement and requiring an investment of some £48.3bn.
According to Kamma’s Energy Efficiency Investment Index, 60% of UK households currently have an EPC band D rating or below, which rates a home’s performance in terms of energy use per square metre, energy efficiency based on fuel costs, and environmental impact.
Kamma say this is threatening the government’s commitment to bring all greenhouse gas emissions to net zero by 2050, with household emissions accounting for 22% of the UK’s total greenhouse gas emissions.
By averaging the costs of improvements proposed by the EPC register, Kamma has calculated that raising the average for England and Wales up by just 1 SAP point would cost £11.2bn.
Orla Shields, chief executive at Kamma, said: “Progress in improving the energy efficiency of housing has been slow to date, with the national average increasing by just 2.9 SAP points in twelve years.
“With much at stake in the fight against climate change, there needs to be more transparency on the pace of improvement and more clarity as to the costs involved.
“With a growing market for green finance products, deploying lenders to the front line could provide the impetus for change that we really need.”
EPC data has been made “open” and freely available but integrating this data with lender portfolio data is technically challenging.
Disclosing portfolio-wide EPC performance means reconciling and matching the exact property and delivering accurate information at scale.
Without a clear view on current portfolio performance, it could prove impossible for lenders to improve it according to Kamma.
Commenting on the findings, Andrew Knight, data and technology analyst at the Royal Institute of Chartered Surveyors, added: “The ability to connect data sets from multiple sources will be key in driving improved energy performance for individual properties.
“And, in supporting lenders and policy makers analyse at both portfolio and national levels.
“Data on residential property is currently highly fragmented and unstructured and geo-spatial technology has the potential to support a variety of use cases such conveyancing, rental and fire safety in addition to sustainability in all its forms.”
