Energy efficiency targets for the private rented sector were notable by their absence from the King’s Speech. Here James Kent, the NRLA’s Chief Innovation Officer, and founder of digital compliance platform Safe2, explains why landlords need to know where they stand sooner rather than later.

Labour’s manifesto ahead of the General Election was clear - there would be new energy efficiency targets for the private rented sector and a new deadline for compliance.

On the campaign trail Sir Kier Starmer said new minimum energy efficiency standards would be brought in for private sector landlords by 2030, and while the Labour manifesto did not include details of what a minimum Energy Performance Certificate (EPC) rating would be, media reports suggested it could be a ‘C’.

While energy efficiency did not make it into the King’s Speech – laying out the Government’s priorities for the next parliamentary year – Energy Security and Net Zero Secretary, Ed Miliband MP has subsequently made a formal statement confirming this.

In a speech to the House of Commons last week he told MPs: “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.”

The C target mirrors the original Conservative proposals, first mooted in 2021 These would have required all landlords to have a C rated home by 2028, but were axed by Rishi Sunak last year.

Challenges

We at the NRLA support the principle of energy efficient homes, but understand many landlords face significant challenges when it comes to making upgrades, particularly when it comes to insulating older solid brick homes.

Uncertainty about the shape of reform is also a significant barrier to undertaking the works ahead of time.

With energy efficiency ratings changing regularly, it is not always clear what works should be undertaken to futureproof a property for 2030, particularly where the landlord is choosing between an energy efficient gas boiler and installing a heat pump, for example.

The last Government was consulting on the latest round of these changes just prior to the election and they may still be introduced, something you can read more about here.

Stay of execution?

While some landlords might view the absence of the new targets from the King’s Speech itself as a ‘stay of execution’, what we really need is detailed information.

We can then talk to decisionmakers about potential funding options and other support for landlords, 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 budget and plan improvement works – and find traders to carry them out, something which is not always straightforward.

The sooner we know exactly what’s expected of us, the sooner we can start to get the ball rolling when it comes to scheduling and funding works, and the less likely it is any new legislation will affect the supply of rental homes.

Also, with tenancies now typically lasting more than four years, a longer implementation period will allow more landlords to make improvements during void periods, rather than ending tenancies to perform what can be major works.

How could the changes be introduced?

While it did not address energy efficiency standards specifically, the King Speech did include a commitment to introduce a Decent Homes Standard to the private rented sector.

The previous Government had considered including energy efficiency requirements when they planned to modernise the existing standard, and something similar could happen under the Labour Government.

For now, 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, including targeting funding for energy efficiency improvements and tax incentives to reduce the overall cost.

About Safe2

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.

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