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Refusal to install a heat pump could lower the valuation of your house

May 4, 2022

By Paul Homewood


h/t Ian Magness


More state control being imposed on us:





Households that refuse to install heat pumps could see their properties fall in value under a Government review.

A “root and branch” review of how Energy Performance Certificates (EPCs) are calculated will boost the scores of households that use heat pumps, remote-controlled thermostats and other eco inventions backed by ministers.

The system, which will be in place by 2025, is designed to reflect the Government’s commitment to decarbonising homes as part of its Net Zero drive.

But it may also mean that those who do not adopt green technology in their homes will receive a lower score, which can reduce the value of a property or make it more difficult to rent out.

Landlords have already been told that properties with a rating of less than “C” will be illegal to lease after 2027, while mortgage lenders have offered preferential rates to those buying houses rated “A” or “B”.

The latest move to change the calculations behind EPCs could force homeowners to adopt home energy alterations, or face a costly downgrade.

The Building Research Establishment, which is conducting the review, said the new system would be “better suited to modern and dynamic technologies which will help decarbonise the UK’s housing stock, such as heat pumps, renewables, storage technologies and smart control devices”.

It will also be used in the Future Homes Standard, which mandates that new homes built from 2025 must have low-carbon heating systems installed.

Cost of heat pumps

But despite a recent VAT cut on heat pumps, solar panels and other home renovations in Rishi Sunak’s Spring Statement, trade bodies have warned it is still prohibitively expensive to convert all but the best-insulated homes.

Air source heat pumps, which produce energy by extracting air from outside a property and blowing it across refrigerant liquid, cost £10,855 per property on average, versus £1,400 for a replacement gas boiler.

Households that install the systems typically pay less in energy bills, but the savings are not enough to recoup the original cost of installation, according to the Energy & Utilities Alliance.

Data show around one per cent of UK properties have already been fitted with heat pumps – one of the lowest take-up rates in Europe.

Britain was joint last of 21 European countries in a league table released by Greenpeace last year.

By contrast, the pumps have been adopted in 60 per cent of Norwegian homes and 43 per cent of homes in Sweden.

‘Statism gone mad’

The technology is controversial within the Conservative Party, including among the Net Zero Scrutiny Group, a band of around 50 Tory MPs and peers.

They argue that the pumps are not yet well-developed enough to be rolled out to homes across Britain, and that ministers are imposing unfair costs on homeowners by encouraging their installation.

Craig Mackinlay, the chairman of the group, said altering the EPC calculations to favour properties with green technology was “statism gone mad”.

“This is ‘nudge factor’ on steroids, towards certain technologies that are unproven, unpopular and don’t work very well,” he told The Telegraph.

“I would recommend they leave it alone and wait for technologies that people actually want to come forward, rather than frightening the mortgage, rental and domestic property markets, which it looks to me that this is likely to do.”

If heat pumps were so attractive, there would be no need to force them on us.

  1. HotScot permalink
    May 4, 2022 9:42 am

    “They argue that the pumps are not yet well-developed enough to be rolled out to homes across Britain, and that ministers are imposing unfair costs on homeowners by encouraging their installation.”

    They have been used in Scandinavian countries for decades. If they don’t work properly by now, they never will.

    • Philip permalink
      May 4, 2022 9:48 am

      Scandinavian countries are decidedly colder than the UK and therefore are built to a considerably higher insulation standard than the UK. Heat pumps are therefore effective in such properties.

  2. Malcolm permalink
    May 4, 2022 9:44 am

    Personally I would pay more for a house WITHOUT a heat pump. I like the instant hot water that a gas boiler gives you – along with no requirement for a hot-water tank (got rid of mine years ago)…..

  3. David permalink
    May 4, 2022 9:44 am

    The more complicated a system is the more likely it will want repairs quite frequently and motors in these kind of units get progressively noisier with time.

  4. May 4, 2022 9:57 am

    I own a buy to let – it will be sold in 2026 latest. All this cost on top of cost of living crisis means people will vote with their feet. Personally with all these tax hikes and costs of net zero, I am no longer afraid of Labour

    • Thomas Carr permalink
      May 4, 2022 10:23 am

      That’s the point. A general election may bring this issue to a head. A government that appears to be forcing us ‘up the garden path’ will have to come to terms with reality. The media are finally getting the hang of the public’s dislike of enforced capital liability as they do with steep tax increases.

    • Ray Sanders permalink
      May 5, 2022 11:00 am

      Alec, I own 3 rentals all with solid walls, I upgraded all 3 last year from band E to band C without doing any wall nor floor insulation at all. The current EPC assessment system is not what many believe it is. All I did was improve glazing insulation (in one only as the other 2 were already double glazed) upped the loft insulation, changed one very old boiler to a new condensing combination boiler, made every single light bulb low energy, ensured TRVs on all radiators and an overall thermostat for all houses.. Those certificates are now good for 10 years..

      • It doesn't add up... permalink
        May 6, 2022 2:10 pm

        Indeed, EPCs are a complete nonsense. It looks like the proposed changes will continue to make them so as well.

      • 3x2 permalink
        May 6, 2022 6:46 pm

        Alec, I own 3 rentals […] Those certificates are now good for 10 years..

        While I wish you only the best, I find that the problem with investing in any area directly impacted by ‘net zero’ is that
        the ‘landscape’ can change overnight.

        What I’m getting at here is that a new set of politicos could, overnight, make renting very difficult and cancel your certificates.
        In much the same way they can shut down power stations or ‘windfall’ tax some Corporation.

        Hardly an environment conducive to longer term investment. Unless it’s outside of this mess of a country.

  5. Nordisch geo-climber permalink
    May 4, 2022 10:05 am

    Analogy with being taxed almost £700 a year just for owning a V8, yet may be required for towing and heavy work. Outrageous discrimination. As in Texas, a V8 should be a basic human right – EFF OFF government!! Get out of our lives, esp. with your CCA 2008 corruption and confetti money to criminals and subsidy chasers.

    • 3x2 permalink
      May 6, 2022 6:57 pm

      and confetti money to criminals and subsidy chasers.

      Subsidy farming is an ‘investment’ here. While idiots are willing to pay, I’ll take the loot.

      Big V8’s are not really a thing here in The UK. Our roads are simply not built for them.
      Skinny Horses and Mini’s …

  6. Martin Brumby permalink
    May 4, 2022 10:06 am

    “Households that do install heat pumps will certainly see their wealth and quality of life fall in value under a Government review.”

    Fixed it for them!

  7. May 4, 2022 10:46 am

    It’s either one of these, hanging on a suitable wall, that can rapidly provide all your heating and hot water – from under £500 inc VAT

    Or very bulky, expensive, complicated, internal & external kit that needs significant space that many homes simply don’t have.

  8. Harry Passfield permalink
    May 4, 2022 10:57 am

    If heat-pumps are required to contend with the ‘climate emergency’, I encourage readers to read Willis’s article on getting things into proportion over at WUWT

    I particularly liked his real temp charts over time:

  9. May 4, 2022 11:51 am

    Ah yes, the EPC; that well known deal breaker when considering purchasing a house!!

    • Penda100 permalink
      May 4, 2022 3:17 pm

      I expect the Government to ban mortgage lenders from lending on sub EPC3 properties or at least insist on penal interest rates.

      • It doesn't add up... permalink
        May 6, 2022 2:14 pm

        Government plans will simply cause a massive housing crisis. There are 1bout 191 million homes at EPC D or lower. Take those that are rentals off the market, and where are people going to live? Refuse to allow them to be sold, and ditto. The policy is crazy, and can’t be implemented. There is no way that even if upgrading to EPC C made any kind of financial sense it would be achieved given the number of properties needing upgrades.

      • It doesn't add up... permalink
        May 6, 2022 10:21 pm

        Excuse the typos. It’s 19 million homes.

  10. May 4, 2022 12:47 pm

    On the other hand, there’ll be plenty of people who will see the *absence* of a heat pump as a premium, especially as the true costs and lack of heating capability the suffer become more well known. Similar with solar panels, they could actually be a liability when it comes to selling your house.

  11. ed rodolph 1891 permalink
    May 4, 2022 12:59 pm

    Heat pumps are no more than the gweenies imposed spite on the rest of us. There are IDIOTS in government who play their insane game. WHY would anyone discard a perfectly viable working oil or gas boiler and spend multi £thousands to use ultra low value heat from the frosty garden outside, to just barely warm their houses? The entire concept, ie, that CO2 is mankind’s mortal enemy, is simply RIDICULOUS, -despite all the hype. The last thing I ever want in my Raeburn/log heated house is a very costly highly INEFFICIENT plumbers’ nightmare, and a bill for umpteen £thousands? NO WAY!.

  12. John Halstead permalink
    May 4, 2022 3:00 pm

    I’m not bothered about that, in fact houses without the complexity and ineffective nature of those contraptions will probably enhance their value.

  13. Ed Belfast permalink
    May 4, 2022 7:45 pm

    If I were dictator, here’s how I’d approach Net Zero (if I weren’t allowed to just scrap it)

    Take Rolls Royce up on their offer of modular nuclear reactors
    Also invest heavily in the development and building of molten salt nuclear reactors for longer term use

    Produce hydrogen using the aforementioned cheap, zero emissions nuclear power via electrolysis.

    Blend it with natural gas and distribute it via the usual distribution channels for burning in ordinary appliances.

  14. gareth permalink
    May 4, 2022 8:49 pm

    Good. If my house is worth less when I die there will be less tax to pay to these thieving scummers, and maybe it can pass to sensible, poorer, folks.
    Incentives matter: if you up taxes and regulations, people do less of that which is encumbered and attracts the taxes – see doctors retiring early (and why did too).

  15. ThinkingScientist permalink
    May 4, 2022 8:54 pm

    Why on earth would I give a f#ck what the EPC rating is when buying a house? And why would it change the valuation? A house is worth what people will pay for it, not a useless piece of government regulated paper.

  16. Ray Sanders permalink
    May 5, 2022 11:12 am

    As a friend who installed an ASHP recently discovered, it has to run nearly all the time as opposed to the 6 hours a day his previous oil boiler ran (1.5 hours am and 4.5 hours pm.)
    As a result the 125W circulating pump (enlarged from his old one of 95W to accommodate larger water capacity in the system) run for 16 hours more each day. So over 2kWh additional peak rate electricity for 31 days runs out at over £18 per month just on the pump!

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