Landlords granted reprieve by Labour as energy efficiency timeline extended
The government has officially extended the deadline for landlords to tighten energy requirements in the privately rented sector by two years to 2030.
As of 2030, all private landlords will be required to meet a higher standard of Energy Performance Certificate (EPC) C or equivalent in their properties – up from the current level of EPC E.
The plan to improve energy efficiency has been in the pipeline for years, with a pledge to force all landlords to meet EPC C by 2028 scrapped in 2023 by Sunak’s Conservative Government. Labour reintroduced the pledge – albeit with a later deadline – last year.
Energy Secretary Ed Miliband said the plans will “raise the efficiency of homes to cut the cost of bills”.
The government has estimated the plans will save renters £240 annually on energy bills.
Charles Wood, Deputy Director at Energy UK, said the recommitment from the Government on improving energy efficiency standards was “welcome”.
“The most affordable energy is the energy we don’t use – yet too many households still lose money and warmth due to inefficient homes,” Wood added. “Boosting energy efficiency is the most effective way to lower energy bills and system costs.”
Adam Scorer, Chief Executive of National Energy Action said: “It is about addressing high energy bills and inefficient homes, but it also contributes to other government missions, supporting efforts to reach net zero, preventing ill-health and tackling child poverty.”
Extra costs for landlords
The average cost to landlords of complying with the proposals to upgrade their properties is estimated to be between £6,100 and £6,800 by 2030.
Chief Executive of the National Residential Landlords Association Ben Beadle said the move to energy-energy homes required a “realistic plan”.
“The chronic shortage of tradespeople to carry out energy efficiency works needs to be addressed, alongside a targeted financial package to support investments in the work required as called for by the Committee on Fuel Poverty and Citizens Advice.
“Importantly a realistic timetable is needed if the 2.5m private rented homes, which will not currently meet the Government’s proposed standards, are to be improved,” Beadle said.
Friends of the Earth warm homes campaigner, Sana Yusuf, said: “These proposals are good news for renters and will make it cheaper for tenants to heat their homes, but the government must ensure this doesn’t drive up rents and that the cost of insulating properties is covered by landlords.
“If the scourge of cold homes and fuel poverty is to be eradicated ministers must also give more support to low-income owner-occupiers who struggle to stay warm in winter.”
The government will launch a consultation on living standards in the private rented sector, including proposals to further cut the cost of energy bills and a consultation on a revised fuel poverty strategy.
This will focus on “improving the energy performance of homes, supporting low-income households with energy affordability and protecting them from high prices,” the Government said.
The private rented office sector also has a requirement in place for all commercial properties in England and Wales have a minimum EPC rating of E, but this will increase to C in 2027.