ECO3 will require EPCs for nearly all improvements to privately rented properties
On 19th July 2018 Government published its response to the ECO3 consultation and whilst persisting with deemed scores as a way of calculating the amount of support available, it will ensure that almost all privately rented properties will need an EPC to prove eligibility.
The Government is to restrict ECO measures allowed in the private rented sector to reflect that landlords are separately required to meet minimum energy efficiency standards. As such, EPC Band F and G rated properties will only be eligible for high cost measures (e.g. solid wall insulation and renewables measures) so that landlords do not use ECO to meet their basic requirements.
Private rented properties already at EPC Band E or above can benefit from any ECO measures, including first time central heating, because landlords are only required to meet a minimum standard of EPC Band E at this time and there are no requirements on a landlord to improve the EPC rating of the property beyond Band E.
The response adds that "broken heating systems will not be allowed at all as Government expects landlords to provide working heating systems to their tenants."
In summary private rented properties wishing to apply for funding for anything other than a "high cost measure" must have an EPC to prove that they are already above the minimum required standard.
Elmhurst's Managing Director Martyn Reed confirmed that "this is good news for those in fuel poverty to ensure that public money is not spent in a way that subsidizes private landlords at the expense of those in fuel poverty. Whilst Elmhurst believes that all ECO funding should be focussed on those in the poorest performing homes, this is a very welcome step in the right direction"
To read the full Government response click here.