Assetz Capital wants 95 per cent of all the new homes it funds to have an energy performance certificate (EPC) of B or higher by the end of 2022, as the platform continues to advocate for eco homes.
The peer-to-peer lending platform has been a vocal supporter of factory-built eco homes to address the housing crisis.
Chief executive Stuart Law says that small- and medium-sized enterprise (SME) property developers are best placed to deliver factory-built eco homes which are extremely energy efficient, and this is an area that Assetz will be investing in going forward.
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“We definitely see SME housebuilders taking climate change more seriously,” Law says. “This is one of the areas where they can claim to have a USP.”
Assetz uses the EPC rating system to determine how energy efficient its new homes are. EPC ratings run on a scale from A to G, with A being the most efficient with the cheapest fuel bills and G being the least energy efficient.
“We’ve seen a number of lenders talk about EPC level E,” says Law. “We’ve seen a few alternative finance houses saying they’re okay with EPC C, whereas we’re targeting something that is far, far beyond that. We’re targeting 95 per cent of all the new homes we fund will be EPC B or better by the end of 2022.”
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Energy efficient housing is expected to become more popular due to rising gas and oil prices, as well as climate legislation. The recent COP26 climate conference saw a number of countries agree to reducing the use of fossil fuels such as coal, while working towards a goal of net zero carbon emissions by 2050.
Law has warned that older housing is going to go down in value due to the hidden costs of making these homes more energy efficient. He added that the cost of making the average home energy efficient could be as much as £50,000.