According to IMLA: “Reporting average EPC ratings is a waste of time.”

The Intermediary Mortgage Lenders Association has said that reporting EPC ratings should not be a priority.

Government proposals saying that lenders must report the energy ratings of the properties they lend against the risks of loss of time and resources said the Intermediary Mortgage Lenders Association.

The trade body was responding to a query from the Department for Business, Energy and Industrial Strategy (BEIS) proposing that lenders annually disclose the average EPC rating of all properties they lend.

IMLA said the government would be better focused on helping homeowners make improvements to their properties with the help of grants and loans.

“Climate change is a very serious matter for lenders.”

Kate Davies, the IMLA CEO, said: “Lenders are taking the challenges posed by climate change very seriously, which is why many have already taken important steps to understand and prepare for the more immediate risks posed by our climate changing.

“They also recognize the important role the mortgage market has to play, with a growing number now offering ‘green mortgages’ to incentivize consumers to improve the energy efficiency of their properties.”

“However, these latest BEIS proposals are highly unlikely to bring real change. Rather, they would force lenders to spend too much time collecting and disseminating data in an exercise that, at the end of the day, will not change a single energy-saving light bulb.”

She added: “It makes more sense to make sure that homeowners have really accurate information about the energy efficiency of their property, and the best place to start is to make sure that EPCs are really fit for purpose.”

“If the energy efficiency of a property is reflected in its value, it will incentivize homeowners to make improvements, which can be financed through a combination of loans, for those who can afford them, and government grants to help those who cannot.”

“There is no point in creating artificial competition between lenders that could result in them avoiding lending on properties that are less energy-efficient and therefore less desirable. In the worst case, this could lead to some borrowers being unable to re-mortgage or sell. It is essential that this is avoided.”

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