The Secretary of State for Energy has committed to boosting minimum energy efficiency standards by consulting on proposals for private and socially rented homes to achieve Energy Performance Certificate C or equivalent by 2030.
An Energy Performance Certificate (EPC) provides a detailed picture of a property’s energy efficiency and CO2 emissions. As a landlord, you need to ensure that your property has an EPC that meets the latest regulations — the Minimum Energy Efficiency Standards (MEES). “A” is the best possible score and “G” is the poorest. Currently, your property must achieve a valid EPC rating of E or above, or it cannot be legally let. An EPC is valid for 10 years and currently doesn’t need to be renewed unless a new tenancy is created.
Reiterating the commitment, Ed Miliband MP stated at the 2024 Labour Party Conference they want to lift over one million households out of fuel poverty, with their plan for the biggest boost to home energy standards.
With the consequences of high energy bills amid a cost-of-living crisis, many tenants are exposed to draughty homes and expensive bills, alongside the consultation for Decent Homes Standard, the UK Government wants to transform all round living standards.
We as property agents want to see more energy-efficient homes, but new rules and requirements must be realistic and achievable for all tenures. The consultation process must highlight the different property types across the rented sector to ensure the targets, guidance, and funding prioritise the most difficult to decarbonise.
A new energy efficiency grant to upgrade properties
The UK Government has also announced a new Warm Homes: Local Grant for low-income homeowners and private tenants with the support of their landlords to help with energy performance upgrades and the introduction of cleaner heating.
The grant is due to start on 1 April 2025, will run for 3-5 years and will be delivered by local authorities. It contains two £15,000 cost caps per home, one for energy performance and one for Low carbon heating measures totalling £30,000 per home; the income threshold for the scheme will be £36,000. This is a welcome addition. However, it remains to be seen how it will work for landlords and tenants in practice
Without providing landlords with incentives and access to sustained funding, it is unlikely that energy efficiency targets for the private rented sector and a reduction in emissions across the property sector will be met.
What can you do?
- Check your EPC rating
- Look at the recommendations to raise your rating
- It may be worth having an new EPC done if you are a few points off as the parameters do shift over time
- See if you can apply for an exemption at https://www.gov.uk/government/publications/private-rented-sector-minimum-energy-efficiency-standard-exemptions/guidance-on-prs-exemptions-and-exemptions-register-evidence-requirements
- If you own a number of older properties, it makes sense to begin budgeting and planning — you might find that some of them qualify for the exemption
