Breaking news: Landlords to pay up to £15k a property to meet ambitious new energy targets
Landlords will need to spend up to £15,000 per property on energy efficiency improvements to meet stringent new government standards.
By 2030 – just five years away – all landlords will need their properties to have a minimum EPC C grade to be legally let, with a consultation on the proposals launched today.
Under the plans, landlords are expected to start with 'fabric improvements' such as installing double glazing and cavity wall and loft insulation; moving on to solar panels and batteries if their properties still fail to make the grade.
This announcement follows on from another consultation, proposing to change the way EPCs are calculated. As a result, even some properties that are already C or above may still need to do additional work on their properties.
Homes that are already rated A-C will be given some additional time however; continuing to be considered compliant until their current EPC runs out. This may not provide much additional time though, as the Government is also consulting on reducing the validity period of EPCs.
The Government says the £15k cap could be reduced to £10k in areas commanding lower rents, or for properties in lower tax bands, estimating the average cost to landlords whose homes fall below a ‘C’ to be between £6,100 and £6,800 per property.
Targeted financial package
Responding to the announcement, the NRLA said there must be a comprehensive package of financial support to help landlords meet the new targets – as well as assurances improvements are achievable ahead of the 2030 deadline.
NRLA chief executive Ben Beadle said: “We all want to see rented homes as energy efficient as possible, but it will require a realistic plan to achieve this.
“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 2.5 million private rented homes which will not currently meet the Government’s proposed standards are to be improved.”
What is the scale of the issue?
According to the English Housing Survey, between 2013 and 2023 the proportion of private rented sector homes with an Energy Performance Rating of A-C increased from 23% to 48.%.
However, just over 2.5 million private rented homes currently have an Energy Performance Certificate rating of D-G.
This is, in part, due to a disproportionate number of homes in the private rented sector – around a third – being built pre-1919, making them some of the hardest to improve.
This is compounded by the fact the UK is already facing a shortage of 166,000 skilled tradespeople, set to grow to 250,000 by 2030, meaning it will be more and more challenging to ensure improvements can be made ahead of the 2030 deadline.
What happens next?
The Government has already announced a funding package that will be available in selected local authority areas from this April to support tenants on low incomes, with other funding available, subject to conditions.
However more is needed.
In its response to the consultation the NRLA will be asking for a comprehensive funding package to be made available across the board to help landlords meet the new standards, and for the Government to give serious thought as to whether its plans are achievable within the five-year timeframe.
More information
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For details of existing funding available click here.
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The NRLA’s award-winning Training Academy also runs a course on energy efficiency for landlords and a new retrofit course. For more information click here.
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Part of the NRLA family, Safe2 is the leading provider of property safety certificates, including EPCs, with exclusive discounts available for NRLA members. For more information click here.
