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The government is pressing ahead with its pledge to bring all private rented homes up to the Energy Performance Certificate (EPC) Band C standard by 2030.
A consultation paper, Improving the energy performance of privately rented homes, published on 7 February, sets out proposals for upgrading the energy efficiency of England’s private rented dwellings. It will implement a pledge – made by Ed Miliband, Secretary of State for Energy Security and Net Zero, at last year’s Labour Party Conference – that all homes must meet EPC B or C.
For new lets, landlords will have until 2028 to comply with the EPC Band C requirements. The consultation paper says the amount private landlords will be expected to pay to bring their energy inefficient properties up to scratch will be capped at £15,000 per property. This is a 50% increase on the maximum cap proposed by the previous government when it consulted on the update of Minimum Energy Efficiency Standards in 2021.
Landlords will face fines of up to £4,000 for renting out a non-compliant property for three months or more.
To cushion the blow for landlords renting out properties in less-affluent housing markets, the consultation sets out proposals for an ‘affordability exemption’ that would cap landlords’ energy efficiency investment at £10,000 in such areas.
This move, which would designate areas based on factors such as lower-than-average rents or council tax bands, would ‘minimise disruption’ to housing supply in the private rented sector.
Welcoming the EPC announcement, Energy Saving Trust head of policy Stew Horne, said: ‘With almost a fifth of homes across England being privately rented, and around a quarter of these households living in fuel poverty, improving the energy efficiency of these properties is key to supporting a fair transition to a low carbon society.
‘It will also be important to facilitate the changes landlords can make to upgrade private rented homes, including providing access to attractive green finance options.
‘We look forward to helping to shape the Warm Homes Plan so that it encourages the retrofit of the private rented sector, creating more comfortable homes and lowering bills for renters.’
