Answers needed on energy efficiency plans
Landlords will have to raise their EPC rating to C within the next six years or else be unable to let out their rental homes. Here James Kent, the NRLA’s Chief Innovation Officer, and founder of digital compliance platform Safe2, explains why it’s vital the Government puts meat on the bones of its energy efficiency plans to avoid landlords being left in limbo.
When former PM Rishi Sunak abandoned the Government’s proposed energy efficiency targets a year ago, we warned it was unlikely to be the last we heard of them.
Now, in the wake of the election and King’s Speech, Energy Security and Net Zero Secretary, Ed Miliband MP has confirmed the Labour Government will introduce a minimum EPC rating of C for rented homes, with landlords given until 2030 to comply.
While energy efficiency did not make it into the King’s Speech, which lays out the Government’s priorities for the next parliamentary year, Miliband told the Commons: “One thing that this Government will do that the last Government did not, is demand that landlords raise the standard of their accommodation to a proper energy performance certificate standard C by 2030.”
This sounds all too familiar.
Landlords were left in limbo by the former administration, which consulted on the EPC C plans in 2021 but never officially introduced the targets.
Now landlords are once more stuck between a rock and a hard place, with target dates announced, but no detail as to the shape of reform or how EPCs will be calculated in future.
This means it’s not always clear what works should be undertaken to futureproof a property, particularly where the landlord is choosing, for example, between an energy efficient gas boiler and installing a heat pump.
The last Government was also consulting on plans to change the way EPCs are calculated ahead of the election yet –again – it’s unclear as to whether these changes will now happen.
What landlords really need more than anything at the moment is information.
Challenges
We at the NRLA support the principle of energy efficient homes, but we understand many landlords face significant challenges when it comes to making upgrades, particularly when it comes to insulating older solid brick homes.
Indeed, our inboxes have been bursting with emails from concerned members since the announcement was made.
However, the Government has remained tight-lipped on details, information that’s vital before any improvement works can start.
As a campaigning body, we too need this information, to inform discussions with key decision-makers about potential funding options and other support for landlords, something that’s essential if we are to protect the supply of homes to let in the places where people want to live.
Although 2030 may sound like some time off, landlords need time to plan improvement works – and find traders to carry them out.
As we know there is a shortage of both skilled tradespeople and building supplies, so this is not always straightforward. Inspectors will also be in demand to ensure homes meet the new minimum energy efficiency standard (MEES).
And that’s before we consider the expense.
The average cost of upgrading a property to an EPC rating of ‘A’ is upwards of £30,000, with a ‘deep retrofit’ costing in the region of £70,000 according to some experts.
The former Government had proposed a £10,000 cap on spend per property when it came to bringing homes up to the new standard, but it is unclear as to whether the new government will introduce a cap, or introduce exemptions in certain circumstances, for example listed buildings.
What does the NRLA want to see?
It’s difficult for us to firm up our asks of Government before we know what’s on the table, but we do know there will need to be ringfenced funding to help landlords, be this through targeted grants or 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.
In the meantime, we will continue to engage with the new government, to stress the need for a credible and long-term plan that supports the rental market to improve energy efficiency, allowing landlords to continue to provide warm, efficient homes to those that need them.
More information
Keep an eye on our news site and social media channels for all the latest news on energy efficiency and the new minimum standards.
For more information on our energy efficiency campaign click here.
Safe2 provides landlords with a single service to ensure vital safety certificates, including gas, electrical safety and EPCs are up to date at the click of a mouse. The platform alerts landlords as to when vital safety checks are due and arranges an inspection and the production of the relevant certification.
If a safety check determines that a property has not met legal minimum standards, Safe2 can provide a quote for any remedial work, rectify the problem and re-test the relevant system free of charge. For more information click here.
