Energy efficiency: New targets announced by Labour
Landlords have until 2030 to get their rented properties to an EPC ‘C’ rating – or be barred from letting them out.
Ed Miliband, Energy Security and Net Zero Secretary, confirmed the plans last week, telling 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.”
He said the move will help support more than three million people in the country facing fuel poverty.
The C target mirrors the original Conservative proposals, first mooted in 2021, which would have required all landlords in England and Wales to have a C rated home by 2028 – plans which were axed by former PM Rishi Sunak last year.
What happens next?
While the NRLA supports the principle of energy efficient homes, we know many landlords face significant challenges when it comes to making upgrades, particularly when it comes to insulating older solid brick homes.
We are asking the Government for more information as to how properties will be assessed and details of any exemptions and spending caps, as well as whether funding or other support will be available to landlords when it comes to making improvements.
New regulations will be needed – and we will be pushing for details to be set out swiftly to allow landlords time to plan for any upgrades required.
The last Government was consulting on plans to change the way EPC inspections are carried out just prior to the election, something you can read more about here.
Now that a firm target is in place, the NRLA will be continuing its campaign on the issue and engaging 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 improvements and tax incentives to reduce the overall cost of making changes.
NRLA deputy director of campaigns, policy and public affairs Meera Chindooroy said: “In the midst of a housing and cost of living crisis it is vital that we ensure there is a healthy supply of quality homes to let in the places where people want to live.
“Creating energy efficient homes is a win/win – tenants have cheaper bills, and the property is more marketable as a result. However, the costs to get some homes, typically older properties, to a C grade is, quite simply prohibitive for smaller landlords.
“Our research shows that, contrary to popular opinion most landlords are not property tycoons with money to spare, and with improvements potentially costing tens of thousands of pounds it is essential that the government comes up with a plan that will work across the country.”
Under the previous government’s ‘C’ rating proposals spend on energy efficiency improvements was to be capped at £10,000.
However, as the NRLA pointed out at the time, the impact this would have on landlords would differ depending on which part of the country they lived in – £10,000 being much more feasible for a landlord to finance if they are renting out homes in London, for example, compared to someone whose properties are in the north east.
While 2030 may sound like some time off, landlords need time to budget for and plan improvement works – and find traders to carry them out – meaning landlords need answers sooner rather than later.
Keep an eye on our news site and social media channels to find out more on the progress of the NRLA’s energy efficiency campaign and any government announcements about what change will look like.
More information
- For more information on the NRLA campaign on energy efficiency click here.
- The association also offers an energy efficiency training course, with more detail available here.
- Safe2, the NRLA’s compliance arm, 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. For more information click here.
