Directing Your Energies
With UK homes accounting for almost a third of carbon emissions, conveyancers are uniquely placed to help homeowners to cut costs, gain competitive advantage for their own firms, and support the UK’s commitment to reducing emissions, says Nigel Farren
The UK has the oldest housing stock in the world, and all major political parties recognise that it is essential to reduce the energy wasted in our homes substantially.
However, the scale of the challenge is unprecedented, and with the UK government commitment to an 80% reduction in carbon emissions by 2050 under Roadmap 2050, the need for action is urgent.
UK homes account for 27% of total carbon emissions, and there is, therefore, much work to be done in retrofitting these properties. For instance, there are still an estimated 6.3 million homes that need cavity wall insulation – nearly a quarter of all UK homes – and an estimated 13 million homes that need more loft insulation. Making these changes would save nearly seven million tonnes (Mt) of CO2 a year; the equivalent of having more than two million fewer cars on the UK’s roads. There are also an estimated seven million homes that need solid wall insulation.
Enabling action on improving energy efficiency at the ‘trigger points’ in the life of a home – such as rent, sale and purchase – is vital, and residential conveyancing solicitors are in a pivotal position to help ensure these changes happen.
As readers will no doubt be aware, energy performance certificates (EPCs) were introduced in 2007 to help facilitate an improvement in the energy efficiency of homes, and it is a legal requirement to have an EPC if you are buying or selling a home. An EPC is also required on a property if it is being rented for the first time since 1 October 2008 (this is an area of particular concern, as the private rented sector has the highest proportion of non-decent, cold homes, but anecdotal evidence suggests the compliance of private landlords to the requirements of EPCs is currently very low). To date, over four million EPCs have been issued, but many owners are unaware of the benefits and savings they can make by implementing energy saving measures recommended in their EPC, and the advice and grants available to help them do this.
A further one million EPCs could also be issued in 2010. Each of these transactions will require the services of a conveyancer, making Law Society members well placed to communicate to clients the importance of improving their EPC rating.
The benefits for homeowners
Perhaps the most winning argument for homeowners to improve their EPC rating is that it can help them save money; in an average three-bedroom semi-detached home, those improving their rating from an F to a C could save £700 a year on their energy bills.
A high EPC rating could also make homes more attractive to buyers, easier to sell, and lead to more stable tenancies. A 2008 survey of buyers and sellers by the Energy Saving Trust found that 54% of buyers would be willing to pay more for an energy-efficient home. Over three-quarters (78%) of buyers and sellers believed having a ‘poor ‘ energy rating could lead to buyers haggling down the price. And according to 54%, a 'green' home will be more important than a fashionable home in the future.
Other potential benefits to homeowners of improving energy efficiency include enhanced quality of life, lower incidence of cold-related illnesses, lower property maintenance costs, and potential tax benefits, if they are a landlord.
The costs of actually doing the work are offset by all of these benefits. Whether it be installation of measures for a single property or a large housing portfolio, homeowners can receive competitive prices from locally based installers that are members of the National Insulation Association. If homeowners are aged 70 or over or receiving income or disability related benefits, installation of measures could be free. Installation of other energy saving measures such as condensing boilers and solar panels could also be arranged.
The benefits for you
Solicitors' have various obligations related to their duty of care to clients. If a client is considering buying a home that has a poor EPC rating, then it could be in the best interests of that client if their solicitor were to draw attention to this.
Referring clients with E, F or G EPC ratings to installers of loft and cavity wall insulation could also have tangible business benefits for conveyancing solicitors. For example, they would be seen to be enhancing their services in the best interests of clients, potentially giving them a significant competitive advantage over members that were not helping clients in this respect. They would also be able to gain favourable PR by showing they are committed to helping raise environmental awareness. Referring clients to installers may also provide the opportunity for generating new income streams.
• If any reader would like further information on how they can refer clients to National Insulation Association-approved installers, please contact Nigel Farren on 0845 370 4567 or at nigel@homesmatter.co.uk.
With UK homes accounting for almost a third of carbon emissions, conveyancers are uniquely placed to help homeowners to cut costs, gain competitive advantage for their own firms, and support the UK’s commitment to reducing emissions, says Nigel Farren
The UK has the oldest housing stock in the world, and all major political parties recognise that it is essential to reduce the energy wasted in our homes substantially.
However, the scale of the challenge is unprecedented, and with the UK government commitment to an 80% reduction in carbon emissions by 2050 under Roadmap 2050, the need for action is urgent.
UK homes account for 27% of total carbon emissions, and there is, therefore, much work to be done in retrofitting these properties. For instance, there are still an estimated 6.3 million homes that need cavity wall insulation – nearly a quarter of all UK homes – and an estimated 13 million homes that need more loft insulation. Making these changes would save nearly seven million tonnes (Mt) of CO2 a year; the equivalent of having more than two million fewer cars on the UK’s roads. There are also an estimated seven million homes that need solid wall insulation.
Enabling action on improving energy efficiency at the ‘trigger points’ in the life of a home – such as rent, sale and purchase – is vital, and residential conveyancing solicitors are in a pivotal position to help ensure these changes happen.
As readers will no doubt be aware, energy performance certificates (EPCs) were introduced in 2007 to help facilitate an improvement in the energy efficiency of homes, and it is a legal requirement to have an EPC if you are buying or selling a home. An EPC is also required on a property if it is being rented for the first time since 1 October 2008 (this is an area of particular concern, as the private rented sector has the highest proportion of non-decent, cold homes, but anecdotal evidence suggests the compliance of private landlords to the requirements of EPCs is currently very low). To date, over four million EPCs have been issued, but many owners are unaware of the benefits and savings they can make by implementing energy saving measures recommended in their EPC, and the advice and grants available to help them do this.
A further one million EPCs could also be issued in 2010. Each of these transactions will require the services of a conveyancer, making Law Society members well placed to communicate to clients the importance of improving their EPC rating.
The benefits for homeowners
Perhaps the most winning argument for homeowners to improve their EPC rating is that it can help them save money; in an average three-bedroom semi-detached home, those improving their rating from an F to a C could save £700 a year on their energy bills.
A high EPC rating could also make homes more attractive to buyers, easier to sell, and lead to more stable tenancies. A 2008 survey of buyers and sellers by the Energy Saving Trust found that 54% of buyers would be willing to pay more for an energy-efficient home. Over three-quarters (78%) of buyers and sellers believed having a ‘poor ‘ energy rating could lead to buyers haggling down the price. And according to 54%, a 'green' home will be more important than a fashionable home in the future.
Other potential benefits to homeowners of improving energy efficiency include enhanced quality of life, lower incidence of cold-related illnesses, lower property maintenance costs, and potential tax benefits, if they are a landlord.
The costs of actually doing the work are offset by all of these benefits. Whether it be installation of measures for a single property or a large housing portfolio, homeowners can receive competitive prices from locally based installers that are members of the National Insulation Association. If homeowners are aged 70 or over or receiving income or disability related benefits, installation of measures could be free. Installation of other energy saving measures such as condensing boilers and solar panels could also be arranged.
The benefits for you
Solicitors' have various obligations related to their duty of care to clients. If a client is considering buying a home that has a poor EPC rating, then it could be in the best interests of that client if their solicitor were to draw attention to this.
Referring clients with E, F or G EPC ratings to installers of loft and cavity wall insulation could also have tangible business benefits for conveyancing solicitors. For example, they would be seen to be enhancing their services in the best interests of clients, potentially giving them a significant competitive advantage over members that were not helping clients in this respect. They would also be able to gain favourable PR by showing they are committed to helping raise environmental awareness. Referring clients to installers may also provide the opportunity for generating new income streams.
• If any reader would like further information on how they can refer clients to National Insulation Association-approved installers, please contact Nigel Farren on 0845 370 4567 or at nigel@homesmatter.co.uk.