Energy efficiency for landlords

Privately rented properties in England and Wales require an Energy Performance Certificate (EPC) rating of at least an ‘E’ before they can be let out. The new Government has confirmed they intend to raise this requirement to an EPC C rating by 2030, though no details on this have been published yet. 

Energy efficient homes are beneficial for everyone. But with the average cost of upgrading a property to an EPC rating of ‘A’ currently at upwards of £30,000, there remains a significant challenge for the sector over the coming decades.  

The NRLA is campaigning for financial and practical support for landlords seeking to make rented homes greener.

There are a number of solutions the Government can adopt to enable landlords across the country to upgrade their properties and support them in being proactive in decarbonising the sector. 

We are calling for the Government to:  

• Set out a credible and long-term plan that supports the rental market to improve energy efficiency

• Offer more targeted funding and financing for landlords that is not related to property value and does not penalise those who have been proactive in taking steps to improve the energy efficiency of their properties

• Reduce the cost of energy efficiency improvements through tax incentives, allowing the cost of improvements to be considered as revenue expenditure and offset against tax at the point of spend as with repair and maintenance

• Introduce ‘Building Renovation Passports’ to replace the EPC system and help landlords access useful information when deciding to retrofit their homes. 

The NRLA is engaging with the Government to ensure a sustained programme of support is provided to landlords, to facilitate energy efficiency improvements to dwellings. 

• We are working with the UK Department for Energy Security and Net Zero (DESNZ) and the Welsh Government on energy efficiency and carbon reduction policy, legislation and initiatives

• In 2021, we commissioned research to define the scale of the challenge of decarbonising homes in areas with low property values, its potential impact on the private rented sector, and recommendations for policy changes to address this challenge

• To help landlords cover the costs associated with making energy efficiency improvements across the country, we proposed an innovative funding and financial package

• We have worked in partnership with the Tenancy Deposit Scheme to conducted research among their registered landlords to better understand landlords recent and future energy efficiency investment in their property portfolios

• To drive forward energy efficiency in the PRS, we submitted a paper to the Government on the learnings from the scrapping of the Green Homes Grant Scheme and made recommendations for future schemes.