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There is growing speculation that the deadline for landlords to meet new minimum energy efficiency standards for new tenants has been extended to 2028 and will apply to all rental properties. Landlords who do not comply face fines of up to £30,000.
At the end of 2021, the government has discussed tightening the rules. This requires the landlord to ensure that all properties have at least his C Energy Performance Certificate (EPC) rating instead of his current E rating.
Originally proposed, the change will come into force from April 2025 for new tenants and from April 2028 for existing tenants.
However, with no significant updates since consultations ended two years ago, The Telegraph has announced that the 2025 date will be withdrawn and replaced by a new deadline of 2028, with a view to raising the rating if necessary. It reports giving the landlord three more years.
It is reported that up to 2 million landlords could face an upgrade in their EPC ratings if implemented.
Nothing has been confirmed yet, but it’s believed the news could be officially announced today, which happens to be Energy Security Day.
Goodlord and Vouch welcome the expected announcement.
Rik Smith, Head of Rental Services at Goodlord, commented: Not only is it the right thing to do for the planet, but it will also help lower tenant and landlord bills in the long run. But there is still a lot of work to do before then.
“The Energy Efficiency Task Force has just been formed and needs to move very quickly for landlords to support this transition. EPC methodology also needs a major overhaul to be accurate and fit for purpose. Yes, if it is used as such a fundamental cornerstone in our housing strategy.
“Landlords across the market are already feeling pressure on many fronts, including rising mortgage rates, so lack of the necessary infrastructure or fit-for-purpose guidelines have forced landlords to leave the sector. not here.”
Vouch MD Tom Goodman added: The last thing the sector needs is another push factor to encourage landlords to sell. Rental inventory is already under pressure. What we need now is a balanced and supportive approach from the government in the next step so that landlords can afford these upgrades and buy them. ”
But Ben Quaintrell, head of My Property Box, says the government’s energy efficiency proposals are “unattainable.”
He believes that the proposal to raise the energy performance certificate rating for rental homes from E to C would require huge investments well beyond the means of many private landlords.
Quaintrell, whose real estate group operates in the North East of England and North Yorkshire, said:
“Achieving a net-zero energy efficiency target in modern homes is relatively easy, but the majority of the housing stock dates from the 1960s and earlier and requires significant investment.
“For example, many terraced houses were built with walls that were one brick deep, while others lacked the minimum gaps needed for hollow wall insulation.
We need a UK-wide government investment plan that acts as a viable incentive, unlike the flagship Green Homes Grant, which will be phased out in just six months in 2021.
“If these measures come into force, more private landlords will be forced out of the sector at a time when demand outstrips supply, driving rents higher and further increasing pressure on tenants.
“There is no question that the country needs to improve the energy efficiency of its homes, but it needs a viable government-led investment strategy over a more realistic timeframe.
“Energy efficiency has been discussed at all levels for years, but there has been no real action. Landlords will find thousands of pounds to raise their EPC rating from E to C in just five years. The sudden expectation of that is simply unattainable and will have a negative impact on the rental sector on which so many people depend.”