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Private landlords in England and Wales must achieve an Energy Performance Certificate (EPC) rating of C on their homes by 2030, the government has confirmed.
Under the plans, which were a Labour election manifesto pledge, private landlords will not be able to rent out homes from 2030 if they do not achieve an EPC C rating, up from the current level of EPC E.
At the moment, 48% of private rented homes in England are already EPC C or above and 2.5 million homes have a rating of D-G.
The government estimates the average cost to landlords of complying with the proposals to upgrade their properties at between £6,100 and £6,800 per home.
The higher standard would apply to new tenancies from 2028 and all tenancies would be required to be compliant by 2030.
Energy secretary Ed Miliband said that the changes could save renters £240 a year on their energy bills by raising the energy efficiency of homes.
Inside Housing has approached the Department for Energy Security and Net Zero (DESNZ) for an update on when the government will confirm the EPC C target for social landlords.
DESNZ published a consultation on the new plans for the private rented sector on 7 February.
Under the proposals, landlords will be required to invest up to a maximum of £15,000 per property on improvements to meet EPC C, after which they could register a 10-year exemption to continue to let the property if it does not meet the standard.
An affordability exemption is also proposed, which would lower the cost cap to £10,000 and could be applied in areas with lower rents or council tax bands.
The government is also reforming EPCs with new metrics to come into force next year. EPCs will now include a new fabric performance standard and cover the efficiency and emissions of a home’s heat system.
It is proposing that private rented homes that achieve a score of EPC C before the new EPC methodology is introduced would be considered compliant with the higher standards until their existing EPC expires.
For other homes, landlords will be required to meet the fabric standard through installing measures such as loft insulation, cavity wall insulation or double glazing, before moving on to other green upgrades such as batteries, solar panels and smart meters.
Support for private landlords is available through the government’s Boiler Upgrade Scheme and Warm Homes: Local Grant, which begins delivery later this year.
The target of EPC C by 2030 for the private rented sector was originally proposed in 2020 by the previous government, but never confirmed.
Mr Miliband said: “For years tenants have been abandoned and forgotten as opportunities to deliver warm homes and lower energy bills have been disregarded and ignored.”
“These plans will also make sure that all private landlords are investing in their properties, building on the good work of many to upgrade their homes to EPC C or higher already.”
Caroline Flint, chair of the government’s Committee on Fuel Poverty, said: “In the last five years the efforts to reduce fuel poverty flatlined. I welcome the focus on improving standards in the private rented sector and the opportunity to reset and re-energise England’s fuel poverty strategy.”
The government is consulting on a revised fuel poverty strategy, which will focus on improving the energy performance of homes, supporting low-income households with energy affordability and protecting them from high prices.
Ben Twomey, chief executive of Generation Rent, said: “One in four private renters live in fuel poverty, the highest rate of any tenure. If we can’t afford to heat our homes properly that makes us vulnerable to ill health and other problems in the home, like damp and mould.
“Therefore, we encourage renters across the country to respond to this consultation to make sure the benefits of the Warm Homes Plan are felt by tenants.”
However, Rob Wall, assistant director at the British Property Federation, said: “Given we have effectively lost four years, with the target initially suggested in 2020 but not confirmed, it will be challenging for all properties in the private rented sector to achieve EPC C by 2030.
“We would like to have seen recognition of the time lost reflected through a gentler trajectory, to provide the sector with sufficient time and support to carry out necessary work.”
Ben Beadle, chief executive of the National Residential Landlords Association, said: “The chronic shortage of tradespeople to carry out energy efficiency works needs to be addressed, alongside a targeted financial package to support investments in the work required as called for by the Committee on Fuel Poverty and Citizens Advice.”
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