Labour has announced new energy efficiency targets. Giving landlords until 2030 to get their rented properties to an EPC ‘C’ rating. If not achieved, then the property prevented from being let out.
Ed Miliband, Energy Security and Net Zero Secretary, confirmed the the new energy efficiency targets and 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 presented 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 does this mean for Landlords?
The NRLA – National Residential Landlord Association, while supporting the new energy efficiency targets, have pointed out that many landlords will face significant challenges when it comes to the required upgrades – pointing out insulating older solid brick homes as one such example.
They raise an important point, the Government needs to offer more information as to how properties will be assessed and details of any exemptions and spending caps, as well as if funding or other support will be available to landlords to help toward the improvements.
With labour having now issued new energy efficiency targets, the NRLA will be continuing their campaign and engaging with the new government to stress the need for a credible and long-term plan that supports the rental market, 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.
More information
For more information on the NRLA campaign on energy efficiency click here.
To get in touch with us regarding anything raised in this story, you can find our details here.