Landlords will have to meet decent energy efficiency standards in homes they rent out by 2030, under plans put out for consultation by the Government. All private landlords in England and Wales will be required to meet Energy Performance Certificate (EPC) C or above by the end of the decade, up from the lower EPC E level currently required.
The Government said the proposals could save renters £240 a year on average on their energy bills, and lift up to half a million households out of fuel poverty, as they will not have to spend so much heating cold, draughty homes. Under the plans, landlords will have the choice of how to meet energy efficiency standards, with options such as loft insulation, cavity wall insulation and double glazing.
They will also then have further options such as solar panels, batteries and smart meters, or low carbon heating such as heat pumps. The Government is proposing a maximum £15,000 cap beyond which landlords will not have to spend to meet the EPC C rating, with potential for a lower £10,000 cap if renters are charged lower rents or homes are in a lower council tax band.
Officials pointed to support for heat pumps from the boiler upgrade scheme and the warm homes: local grant programme which will provide funding for measures including insulation, solar panels and air source heat pumps. And with 48% of rented properties already meeting the EPC C grade, the Government wants to see the standard introduced across the board, and believes the move will not lead to increased rents for tenants.
It is estimated that the average cost to landlords of complying with the proposals will be £6,100 to £6,800 by 2030. Previous proposals requiring landlords to meet EPC C standards for private rented homes by 2028 were axed by then prime minister Rishi Sunak when he watered down a series of green policies in September 2023.
Then the move was welcomed by landlords, but drew criticism that it was locking in tenants to years of higher bills. Announcing the new consultation on Friday, Deputy Prime Minister and Housing Secretary Angela Rayner said: “For far too long we have seen too many tenants plagued by shoddy and poor conditions in their homes and this government is taking swift action to right the wrongs of the past.
“Through our Plan for Change we are driving up housing standards, improving quality of life, and slashing energy bills for working people and families.”
Energy Secretary Ed 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.”
He said the new changes could save renters £240 a year by raising the efficiency of homes to cut the cost of bills. “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 Energy Performance Certificate C or higher already,” he said.
New energy performance certificates are also planned, but homes that are already rated A-C under the current system will be considered compliant until the expire, the Government said.