Recommendation 11

HM Government Acknowledged

The Government recognises that the accuracy of Energy Performance Certificates (EPCs) must be improved and has published an Action Plan setting out a series of 35 actions to do this, following an earlier Call for Evidence on EPCs. Since the publication of the EPC Action Plan, we have either met or exceeded the target commencement dates for all actions. Additionally, we have now completed 11 of the 35 actions and have made significant progress towards the completion of the remaining actions. Completed actions include consulting on options for the introduction of a new operational ratings scheme for non-domestic buildings. The EPC Action Plan Progress Report outlines further work we are undertaking to continue to improve EPCs through our review of the Energy Performance of Buildings regulatory framework. It also sets out a commitment to review the methodology by which EPC ratings are created. An updated version, SAP 10.2, will be introduced shortly and the development of SAP 11 has begun. SAP 11 will consider how the methodology may be further evolved to increase accuracy, including by taking account of in-use energy consumption. In addition to the Energy Efficiency Rating (EER), we will be reintroducing an Environmental Impact Rating (EIR) on the EPC to score the building based on its estimate CO2 emissions. Recent consultations on policies that use EPCs (such as minimum energy efficiency standards in the private rented sector and requirements for lenders to improve the energy performance of homes they lend to) have sought views on alternative metric options, for example using both a cost-based and carbon-based metric, to encourage property owners to prioritise cost-effective measures. The Government responses to these consultations will be published in due course. The Government’s Net Zero Strategy also sets out our ambitions to help the construction sector improve its reporting on embodied carbon in buildings. We are exploring the potential of a maximum embodied carbon level for new buildings in the future while encouraging the sector to reuse materials and make full use of existing buildings. In championing low-carbon materials, increased energy efficiency and enhanced product design, we are supporting the sector to deliver the cleaner, greener buildings of tomorrow. With regards to the performance gap, we have introduced a number of measures as part of the 2021 uplift to the Regulations to address the inconsistency between the modelled and actual performance of buildings. For new homes, the comprehensive package of measures is set out in more detail in the Government response to The Future Homes Standard consultation of 2019. The introduction of these measures will reduce the performance gap by improving the accuracy of as-built energy calculations and providing clearer information about the as-built specifications of new buildings to both Building Control Bodies and homeowners. For new non-domestic buildings, the 2021 uplift measures include the development of the Simplified Building Energy Model (SBEM) and the national calculation methodology to incentivise appropriate design solutions; the introduction of more challenging energy efficiency standards and improved compliance; and supporting building owners to better understand how to use their building efficiently. These measures focus on ensuring that buildings are well-designed and well-commissioned and therefore capable, under standard operating conditions, of meeting the carbon targets set by the new standard. Alongside our work on the Future Homes and Buildings Standards, DLUHC and BEIS are developing a Statement of Intent that will consider what more needs to be done by government and industry to deliver net zero buildings by 2050. As part of this Statement, we will consider the performance gap. We are engaging with industry to develop this Statement and hope to publish it shortly. It will be part of our considerations while developing the full technical consultations for both the Future Homes and Buildings Standards.