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The Independent
03-03-2025
- Business
- The Independent
Leasehold flats to be banned in overhaul of centuries-old system
The centuries-old leasehold system in England and Wales will be abolished before the next general election, the housing minister has promised. The sale of new leasehold flats will be banned under government plans to make commonhold the default tenure, handing homeowners greater control over their properties. After years of complaints from leaseholders about crippling costs and deteriorating buildings, housing minister Matthew Pennycook vowed an end to the 'feudal' system. He said homeowners have been subject to 'unfair practices and unreasonable costs' for too long, with measures set out in a Commonhold White Paper on Monday marking the 'beginning of the end' for the system. Under the current system, third-party landlords can own a building's lease and therefore make decisions on behalf of homeowners. The government has proposed bringing the leasehold system to an end, as promised in Labour 's manifesto, giving homeowners more control over how their buildings are run. Homeowners will not have to pay extra costs such as ground rent under the proposed reforms. The white paper states commonhold will be "reinvigorated" through a new legal framework and the sale of new leasehold flats will be prohibited. Mr Pennycook said: "This government promised not only to provide immediate relief to leaseholders suffering now but to do what is necessary to bring the feudal leasehold system to an end - and that is precisely what we are doing. "By taking decisive steps to reinvigorate commonhold and make it the default tenure, we will ensure that it is homeowners, not third-party landlords, who will own the buildings they live in and have a greater say in how their home is managed and the bills they pay. "These reforms mark the beginning of the end for a system that has seen millions of homeowners subject to unfair practices and unreasonable costs at the hands of their landlords, and build on our Plan for Change commitments to drive up living standards and create a housing system fit for the twenty-first century." The government has also said it is "determined" to make conversion to commonhold easier for existing leaseholders. Mr Pennycook added: 'At the heart of the commonhold model is a simple principle: the people who should own buildings, and who should exercise control over their management, shared facilities and related costs, are not third-party landlords but the people who live in flats within them and have a direct stake in their upkeep.' The British Property Federation welcomed the changes, but warned the government to 'tread carefully' with its reforms. Policy director Ian Fletcher said large mixed-used buildings are complex to maintain and manage, calling for training in doing so for owners under the new system. He also called for a clear process for transitioning from leasehold to commonhold, and raised questions about how many people would volunteer to manage their buildings. Finally, he added: 'This is not about rhetoric around feudalism, but fundamentally about how best to own property and manage communal living areas. That may be commonhold – and there is no reason it should not work in the UK - but before we take that leap, we should be weighing up the pros and cons.' A draft Leasehold and Commonhold Reform Bill, which will include the details of how reformed commonhold will work, will be published later this year, the Ministry of Housing, Communities and Local government has said. Legislation will apply to England and Wales, where there are around five million leasehold homes.
Yahoo
13-02-2025
- Business
- Yahoo
How to check your home's Energy Performance Certificate
Energy Performance Certificates, or EPCs, are increasingly coming under the spotlight as the UK works towards meeting its 2050 net zero target. If you don't know your home's EPC rating, you can check it on the government's website; as part of the rating, you'll receive both a number and a letter that determines how energy efficient your home is. A is the best rating and G the worst. An EPC rating is valid for 10 years. EPCs are currently the subject of a government consultation, which is looking into improving their accuracy and refining their requirements, both of which have been called into question by those in the know. Read more: How to find your 'forever home' in 2025 Whether you're a landlord, tenant or homeowner, it's important to know exactly what EPCs measure and how they are a blunt, rather than precise, tool. 'EPCs are a prediction of performance, based on a theoretical model or methodology. They are not a measure of actual energy performance,' flags Rob Wall, assistant director at the British Property Federation. There's much debate among experts as to the usefulness and accuracy of EPCs, so we spoke to several for their take and asked how homeowners can ensure they get the most accurate rating. While much is made of the shortcomings of EPCs, it's worth looking at their positives too. The housing stock in the UK is wide and varied, ranging from medieval houses to high-rise blocks built in the last decade. The current measuring system might not be perfect, but at least it provides a baseline to start from. 'EPCs offer a good yardstick for measuring energy efficiency, but there can be some variation in the accuracy of that measurement,' says Jonathan Ayala, founder of Hudson Condos. 'They are based on standardised calculations rather than actual energy consumption and therefore do not always reflect real usage. "While they offer a good general indication, factors like occupant behaviour and maintenance quality can lead to discrepancies.' EPCs have been criticised for their accuracy, in particular because they don't take into account factors such as lifestyle. It goes without saying that how people use their homes often has a significant impact into how much energy they use. Another major issue is the human error that inevitably happens when certificates are evaluated. 'EPC assessors make mistakes and, where direct inspection is not possible, they will make assumptions based on the general attributes of the building (which, in turn, feed into the ratings calculations and upgrade recommendations),' says Chris Hardman, owner of PropEco. Read more: The pros and cons of part exchanging your home "As a result, it is common to encounter omissions, nonsensical entries and even contradictions within the same certificate." He flags a recent study that estimated 60% of EPCs contained at least one error and another that found different assessors provided markedly different assessments and recommendations. 'EPCs often underestimate the thermal performance of wall, roof, and floor constructions and have limited nuance in terms of options that can be selected,' says Darren Silk of period property experts Expertible. He says the quality of construction and installation is something that affects energy performance in reality, but is difficult to assess with an EPC. 'For instance you can mark in the software that the house has double or secondary glazing, but if that window or system has not been effectively installed, or detailed, then it can be a case of it being registered as being present in the analysis, achieving the rating you are after, but in reality it's so poorly fitted it may as well not have a window fitted at all,' he explains. The properties most likely to give inaccurate EPC ratings are older, period homes or those that have been converted from older buildings. 'The methodology favours newer construction techniques and often doesn't accommodate traditional materials performing differently. Similarly, terraced houses, owing to their common walls, might be better off in reality with insulation that may be factored into the actual calculation,' says Ayala. In contrast, new builds that use modern building methods and materials are likely to have not only better EPC ratings, but also more accurate ones. 'Studies have shown the poorer a property's EPC rating the wider the variability in energy performance,' says Andy Cook of Expertible. 'This is due to limitations in the modelling – and doesn't account for the fact that people will heat older/larger properties differently. "So, EPC ratings for heritage properties have very little resemblance to actual energy efficiency because their performance ranges so wildly.' While EPCs are imperfect, there are many (big and little) things that can be done to improve their accuracy. 'The most accurate EPC can be obtained if the assessor has all the relevant information to hand, such as insulation details, heating system specifications, and recent energy upgrades,' says Ayala. He also recommends that the homeowner is present to clarify any details that might affect the rating. If you want to address an inaccurate EPC, particularly in an older home built using traditional methods, call in the professionals. 'Consult with an architect, traditional retrofit assessor, or other knowledgeable professional, such as someone versed in traditional vapour permeable construction,' says Silk. Read more: How to complete on a property before stamp duty deadline in March "Traditional buildings retrofit assessors that are informed on traditional construction can also argue this on your behalf, and have the authority to do so, which is where having someone experienced is key, as you want to present an accurate assessment, and not overcorrect.' It's likely that the current consultation will lead to both short- and long-term changes, regarding EPCs. 'The consultation proposes some major changes to how domestic EPCs are calculated, moving beyond a single cost metric and including a basket of metrics, including measures on fabric performance, heating systems and smart readiness,' says Wall. 'The consultation is proposing to reduce the validity period of EPCs from 10 to seven or five years, or less.' The rental market is set to be especially impacted by changes to EPC requirements. Currently the minimum standard to rent out a property is an EPC rating of E, but the government is planning to increase this to a C for all tenancies from 2030. An EPC is also only required if a home is being advertised for rent (or for sale), but the consultation may decide to change this so that a valid EPC is required throughout the tenancy. While, in general, it's not currently the case, mortgage lenders are likely to start paying more attention to EPC ratings and make decisions about lending based on them. 'As issues such as climate change become more prominent, the energy efficiency of properties is more likely to impact the mortgage rates that owners can access, what they can do with their properties and even underlying value,' says Hardman. 'While imperfect, EPCs do provide some useful data and are well established – they are therefore likely to play an important role for the foreseeable future.' 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