The government have announced a consultation on mandatory EPC minimum standards for private rental property by 2030; 18 months after former Prime Minister Rishi Sunak scrapped similar plans. As it stands EPC E are minimum standards for private rented property, and with 48% of private rented homes in England already EPC C or above ministers say they want to raise standards as part of the Labour government’s Plan for Change.
There are an estimated 4.9m private rental properties in England; according to the government’s own research the cost of upgrading the 2.58m that do not currently meet EPC C ratings could be as high as £19.8bn. The average cost of upgrading a property to an EPC C is an estimated £8,000.
Landlords will be required to invest in measures such as loft insulation, cavity wall insulation or double glazing, ensuring homes are ‘warmer and more affordable for tenants.’ Amongst the proposals tenants and landlords are invited to give their views on
- offering landlords a choice over how to meet energy efficiency standards. This will require them to meet a fabric standard through installing measures such as loft insulation, cavity wall insulation or double glazing, before moving on to a range of other options including batteries, solar panels and smart meters
- a maximum cap of £15,000 per property for landlords, with support currently available from the Boiler Upgrade Scheme, and Warm Homes: Local Grant which begins delivery this year
- an affordability exemption, which would lower the cost cap to £10,000 and could be applied based on lower rents or council tax band
- requiring all landlords to meet the new standard by 2030 at the latest, providing an extra 2 years compared with previous proposals. Homes that are already rated A-C before the introduction of new Energy Performance Certificates would be considered compliant until they expire
Research suggests the average property with EPC D rating has an average energy bill of £2,513. By upgrading to a C, it would reduce this cost by 29% or £717 per year. Upgrading from an E rating to a C would cut the average energy bill of a property by 48% or £1,685 per year. The average landlord with a F rated property could reduce the average energy bill by 61% or £2,838 per year. And for EPC G rated homes, improving the rating to C would see a saving of c. £4,240 per year.
Deputy Prime Minister and Housing Secretary Angela Rayner said:
“For far too long we have seen too many tenants plagued by shoddy and poor conditions in their homes and this government is taking swift action to right the wrongs of the past. Through our Plan for Change we are driving up housing standards, improving quality of life, and slashing energy bills for working people and families.
Today is just one of many steps we are taking to deliver on our promise to transform the lives of millions of renters across the country, so families can put down roots and raise their children in secure and healthy homes.”
Energy Secretary Ed Miliband added:
“For years tenants have been abandoned and forgotten as opportunities to deliver warm homes and lower energy bills have been disregarded and ignored. As part of our Plan for Change, these new changes could save renters £240 a year by raising the efficiency of homes to cut the cost of bills.
These plans will also make sure that all private landlords are investing in their properties, building on the good work of many to upgrade their homes to Energy Performance Certificate C or higher already.”
Reacting to the announcement, Timothy Douglas Head of Policy and Campaigns at Propertymark, the representative body for estate and letting agents said:
“This consultation and the proposals to extend the Minimum Energy Efficiency Standards for the private rented sector in England and Wales have long been anticipated. However, Minister Miliband must realise it’s not about fighting landlords and people on climate change; it’s about creating realistic and achievable energy efficiency targets that acknowledge the challenges our housing sector faces in adapting and making the necessary improvements in an affordable way.
“Landlords are part of the solution, but the UK Government must listen and support them as housing providers. Failure to do so alongside adequate and sustained grant funding, will only mean that property will not be available to rent, and tenants lose out when there is huge demand for rented property across the country.”
The consultation comes at the same time confirmation Awaab’s Law, which will force social landlords to tackle dangerous damp and mould within a set amount of time as well as repair all emergency hazards within 24 hours, will come into effect in October. Landlords who fail to comply face being taken to court, with social tenants able to use the full powers of the law to hold them to account.
