CHP may push back EPC targets while remaining committed to development

Mr Edwards said that the group’s credit rating from S&P has consistently been towards the bottom end of the rated associations because of its growth and gearing levels relative to peers, but he said this does not bother him.

He said: “I think we took our risk appetite-setting sessions with the board over the last few years to say that that’s where we should be. And we’ve had a G1/V2 rating from the regulator for a while, but that does compel us to push ahead in different ways.”

When asked what CHP is not doing in order to focus on its priorities, such as increasing its investment in its existing stock, Mr Edwards said that the social landlord is slowing down on some of its wider community investment work.

He said that this is something the group still wants to do, but that it has to “reprioritise in the short term”.

Mr Edwards confirmed to Social Housing that the point he was trying to make is that CHP is “likely to have to refocus on being a brilliant, locally focused housing provider”, and that it will have to “work really smartly with partner agencies to maximise our impact on community investment”.

He said: “We’re not cutting back on services, but we’re having to work harder to ensure that expansions into, for example, new community hubs are funded in conjunction with other agencies.”

Speaking on the panel, Mr Edwards said that CHP’s its EPC C target may be scaled back, although it will be completed by the legislated date of 2030.

He said: “Some of our ambitions, and certainly to get to EPC Level C really quickly across our homes, might have to pace a bit more, have a bit more thought as to which customers we really target and help.”

Mr Edwards confirmed to Social Housing that he was referring to the likely trade-offs that all social landlords are facing in the sector now and that EPC targets may have to be pushed back from 2025 to nearer to 2030.

He said: “Whilst our ambitions are to get all of our homes to EPC C or above as soon as possible, it is possible that we’ll have to slow the progress back from 2025 to nearer 2030 for some homes, unless new funding streams from government come out.”

Mr Edwards told Social Housing in January that the group would likely cut back on net zero spending to prioritise damp and mould in the short term.

However, the following month he said the group was “content that the balance of spend between routine and planned maintenance between short-term damp issues and long-term energy efficiency works is a balance that’s working well”.

He also told Social Housing that CHP is not going to cut development spending, because the need for affordable homes where it operates across Essex is “greater than ever”, although pressures remain.

CHP is not alone in making changes to its energy efficiency targets. Adam Masters, assistant director of environment and sustainability at Stonewater, has previously revealed that the 35,400-home group is pushing back its net zero target compared with earlier ambitions.

He told Social Housing in February: “Our longer-term net zero standard is likely to be 2045 rather than 2040 due to the increased cost of retrofit.”