988. Government has an objective for as many homes as possible to reach EPC C by 2035, but this is not yet set out in legislation. Currently, almost half of low-income households in England live in homes that are EPC band D or worse, meaning they may use 27% more gas and 18% more electricity on average than EPC C rated homes.706 Minimum Energy Efficiency Standards require domestic private rented properties to be at least EPC E, and this is expected to increase to EPC C from 2028. As decisions about energy efficiency installations are usually made by landlords, tenants can require particular support.
989. People need clarity on what is expected of them, particularly where large investments are concerned. Making it clear to people that heat pumps are the future, by setting a legislative target, would prevent households from installing a gas boiler which locks them into higher greenhouse gas emissions and will result in them needing to spend more on replacing the boiler later. Gas free housing developments are also being chosen by major UK housebuilders. Barratt Homes opened an 82-house site in Somerset, where all homes have been fitted with an air source heat pump.707 This paves the way for future developments to follow suit in the UK and ensure that new homes are automatically built with a low carbon heating system. In Washington State in the USA, all new houses and apartments from July 2023 will require a heat pump to be fitted.708 This shows that these regulations can be rolled out on a larger scale at pace.
990. Our analysis finds that moving the date by which gas boilers are phased out to as early as possible increases the gains which households experience by 2050. It would therefore save people more money to move the gas boiler phase out date to as early as 2030 - but modelling and stakeholders warn that the UK supply chain for heat pumps could not ramp up quickly enough to deliver this.709 Years of policy delivery delay have caused UK households a portion of their net future benefit and this underlines the need to move faster than in current plans, and crucially, prevent any further delays.
Government should provide certainty by 2024 on the new and replacement gas boiler phase out date to drive industry and investor confidence. The Review recommends bringing the proposed date of 2035 forward and legislating for 2033. |
Government should set a legislative target for gas free homes and appliances by 2033, to contribute to a gas free grid in future. |
Government should legislate for all homes sold by 2033 to also have an EPC rating of C or above in line with the aforementioned NZPC, with exclusions around certain properties (e.g. listed properties, on grounds of affordability). Government should also mandate landlords to include 'average bill cost' alongside the EPC (and possible future NZPC) rating, when letting a property out. This will help renters understand what costs to expect, while also helping to put a premium on energy efficient homes. |
Government should consider options to support homes to include roof solar panels installation as part of its retrofit provision to support homes reaching the Net Zero Homes Standard. |