2023-04-21 06:10:41
What should I know about thermal colanders? (Photo credits: Adobe Stock – )
DPE, Energy Audit, Climate and Resilience Law are all terms that are often vague and yet have a considerable impact on the real estate market and in particular the rental offer. Here are seven things you need to know to understand what’s been going on for the past few months with dwellings labeled as “thermal strainers.”
What is a thermal strainer?
It is a particularly energy-intensive accommodation whose Energy Performance Diagnosis (EPD) rating classifies it Crazy G.
What happens if my accommodation is poorly rated?
The public authorities want to encourage landlords to massively renovate the rental property stock in France and to do this, the Climate and Resilience law promulgated in 2019 provides for a large section devoted to the subject.
For owners living in their property, nothing is planned for the moment, but the matter is getting tougher for landlords:
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Since August 24, 2022, the rents for housing labeled F or G have been frozen for leases signed from this date as for those already in progress.
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Since January 1, 2023, landlords can no longer offer for rental properties labeled G+ (in other words which consume more than 450 KWh per square meter and per year).
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And the noose has not finished tightening since this rental ban will concern G housing in January 2025, F housing in 2028 and then E housing in 2034.
Eventually, there will therefore only be grades A, B, C or D, the aim being to encourage owners to carry out the renovation work necessary to improve the rating of their property.
How many homes are affected?
Since 2021, the calculation method of the DPE has been modified in order to take into account, in particular, the greenhouse gas emissions of housing, which has the effect of increasing the number of housing units that can be considered as energy sieves to 5, 2 million, or 17.2% of the French housing stock, against “only” 4.8 million in 2018 (1).
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What impact on a sale?
The Energy Performance Diagnosis (DPE) mainly indicates the energy consumption of a dwelling and its greenhouse gas emissions to assign it a letter, from A to G.
Since April 1, 2023, it has been supplemented by an energy audit, which contains numerous elements of analysis, proposals for work to improve the level of performance of the accommodation as well as an overall quantified estimate of the cost of this work and mention of the main aid that can be mobilized to finance them.
The energy audit must be given to the future buyer on his first visit or at the latest on the day of the signing of the promise of sale, both for the sale of a detached house and for a collective residential building belonging to a same owner.
The energy audit is mandatory for F or G classified housing, then for E classes from 1 January 2025 and for D classes in 2034.
Professionals expect that all of these new constraints (rent freeze, rental ban, energy audit) will serve as a negotiating lever for future buyers, with a significant impact on the selling price.
Are ECDs reliable?
This is a debate that is far from settled. While the DPE is becoming a key tool in the fight initiated by the public authorities against energy sieves, consumer associations regularly point out the disparity of results depending on the diagnostician.
Thus, in June 2022, the association 60 Millions de consommateurs published a test bench and revealed that for 5 diagnosticians that it had brought in to evaluate a single property, the results were different each time.
Is the law retroactive?
No. This means that existing leases continue to apply. On the other hand, the ban on renting energy strainers in the categories concerned applies to any new contract signed since January 1, 2023.
Good to know: Lease renewals are not affected.
Are seasonal rentals also affected?
For the moment, seasonal rentals, i.e. properties rented for less than eight months a year, are not affected by the ban on renting if the label is G+, but beware, this should not last. : the public authorities announced in October 2022 their desire to modify the Climate and Resilience law so that all properties are concerned, regardless of their rental destination.
The aim is to respond to the concerns of real estate professionals who fear that many owners will turn away from “classic” rentals in favor of seasonal rentals in order to avoid the major renovation work inherent in their poor rating.
Such a phenomenon could lead to a further tightening of the rental market, which is already in deficit between supply and demand.
However, no date has been announced for the actual modification of the law.
(1) “The housing stock by energy performance class on 1 January 2022”, National Observatory for Energy Renovation, July 2022.
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