Lenders should have a role in building a market for energy performance improvements

Elmhurst has issued it draft response to the government's 'Improving home energy performance through lenders' consultation, and agrees that lenders should have an active role in building a market for energy performance improvements.

The consultation proposes that lenders of mortgaged properties would be required to disclose the average EPC performance of the properties on their mortgage portfolio and encourage them to sign up to a voluntary target of meeting a portfolio average of EPC Band C by 2030.

Elmhurst has reflected on the questions posed by this consultation and has developed a draft response in order to stimulate debate amongst our expert members as well as other housing and energy professionals within the industry.

The Headlines of Elmhurst's Draft response

  • We agree with the target of averaging EPC band of C by 2030
  • We recommend that government provide clarity on their ambition for this legislation as to whether it is to reduce spend on energy (based upon the EPC rating) or the carbon emissions (based upon the environmental impact rating), as they can be mutually exclusive. Elmhurst recommend a dual metric
  • We suggest that lenders re required to report that average EPC band (a feature recorded for every RdSAP assessment) by age band so not to disadvantage mortgage lenders for, and purchasers of, older homes
  • We support mandatory targets being set
  • We agree the ambition to help owners move out of fuel poverty

Elmhurst's Technical and Operations Director, Stuart Fairlie, comments: "Elmhurst welcomes this government consultation which aims to provoke lenders to become more actively involved in improving the UK's property stock in regards to energy efficiency. With such great influence and involvement in the property market, it is inevitable that more intervention is required from lenders to ensure we can continue to progress to  net zero carbon by 2050".

Elmhurst is keen to hear the views of our members before compiling a final response, which is why we have created a quick form that you can use to let us know your thoughts. We will review every response and attempt to include them within our final submission. Please also  feel free to respond yourself, which you can do using the consultation link provided below.


This consultation closes on 12th February 2021

Link to consultation: https://www.gov.uk/government/consultations/improving-home-energy-performance-through-lenders

Elmhurst's draft consultation

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Article published: 10/12/2020

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