Energy efficiency rule changes make rental home improvements realistic

Landlords are today welcoming Government changes to proposed energy efficiency rules for the private rented sector, arguing they make improving the rental housing stock more realistic.

Ministers have confirmed their intention to ensure all rented homes that are able should achieve an Energy Efficiency Rating of at least ‘C’.

Following extensive campaigning by the National Residential Landlords Association, the Government has today confirmed in the Warm Homes Plan, that: 

•    All private rented sector properties will have one deadline of October 2030 to meet the Government’s plans. This will mean proposals for an interim date of 2028 for the new standards to apply to new tenancies will not progress. The NRLA has long argued that this was simply too tight a deadline, making it all but impossible to meet.

•    The planned cap on the amount landlords will be expected to invest to meet the new standards will be lowered from £15,000 to £10,000. 

•    The cost cap will be lower where £10,000 would represent 10 per cent or more of a property’s value. The NRLA has consistently called for a graduated cap linked to a property’s value. 

•    Any spending on energy efficiency works since October last year will be included within the planned cap. The NRLA had originally warned that proposals not to include historic spending of this kind created a perverse incentive to stall works that could improve the energy efficiency of a property.

•    Funding support for the sector will be available, including continued access to the Boiler Upgrade Scheme grants.. 

The most recent Government data suggests that just over 2.5 million private rented properties in England have an energy performance rating below ‘C’. 

Ben Beadle, Chief Executive of the National Residential Landlords Association, said:

“We have long supported the need to improve the energy efficiency of the rental housing stock. However, the Government’s initial proposals were simply unrealistic and had no hope of being delivered within the timescales originally set out.

“The Government has clearly listened to our pragmatic proposals to improve its plans, and we look forward to working with it to ensure its ambitions work in practice.” 

-ENDS-
 
Notes:

•    The full Warm Homes Plan can be accessed here. The measures related to the private rented sector can be read from page 60. 

•    According to the most recent English Housing Survey data, in 2023 2,517,000 private rented properties in England have an energy efficiency rating of D-G, down from 3,434,000 a decade earlier. See annex table 2.2 here.

•    Further information about the NRLA can be found at www.nrla.org.uk.  It posts on X @NRLAssociation.

•    The NRLA’s press office can be contacted by emailing [email protected] or by calling 0300 131 6363.