Government must face facts on retrofit timetable

Government plans to improve the energy efficiency of private rented housing are unachievable.

That’s the warning from the National Residential Landlords Association (NRLA), the country’s leading body representing private sector landlords. 

Government proposals currently under consideration could result in private landlords having less than two years to upgrade 2.5 million private rented homes.

Proposals set out in a recent consultation seek to ensure that, wherever possible, every privately rented home should have an energy efficiency rating of at least a C. Under the suggested timelines, the new energy efficiency standard will be confirmed in late 2026, with a view to it applying to all new tenancies by 2028 and all tenancies by 2030.

This could leave less than two years to upgrade over 2.5 million private rented homes that do not meet the current energy performance ‘C’ standard.

Whilst the NRLA supports the Government’s objectives, the timelines proposed are simply unrealistic. This is largely due to a chronic shortage of tradespeople to undertake the work required, which is set to get worse. 

According to Kingfisher group, the owner of Screwfix, B&Q and Tradepoint, the shortfall in the number of skilled tradespeople in the UK is set to rise to 250,000 by 2030.

Ministers are yet to explain how these extensive works are to be funded and have so far failed to heed advice from the Committee on Fuel Poverty, which has called for the introduction of a bespoke package to support investment in energy efficiency works across the market.

In its submission to the consultation, the National Residential Landlords Association calls for a realistic, two stage implementation plan. It proposes that:

•    By 2030, landlords should be required to meet standards related to the fabric of a building, such as installing insulation where possible and required. 
•    By 2036, all landlords should then meet further secondary standards related to the installation of smart meters and efficient heating systems.

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

“We want all private rented properties to be as energy efficient as possible. However, tenants are being sold a pup with timelines that are hopelessly unrealistic.

“The idea that millions of homes can be retrofitted in less than two years is detached from all reality, not least given the chronic shortage of tradespeople the sector needs to get the work done.

“Noble ambitions mean little without practical and realistic policy to match.”

-ENDS-
 
Notes

•    The Government’s consultation on energy efficiency standards in the private rented sector can be accessed here. Page 29 notes that the Government’s plan is to confirm the standards landlords would need to meet in 2026, to be applied to all new tenancies by 2028 and all tenancies by 2030. The consultation references that the new energy performance metrics will not be in use until late 2026. 

•    The NRLA’s submission to the consultation can be accessed here. 

•    The Renters’ Rights Bill will end fixed term tenancy agreements, meaning landlords will be unable to plan with any certainty when new tenancies are likely to be created.

•    According to the English Housing Survey, 2,517,000 private rented households have an energy performance certainty rating below ‘C’. See table 2.2 here.

•    Research by Kingfisher Group suggests that the UK is currently facing a shortage of 166,000 tradespeople, with vacancy levels for many trades close to record highs. The shortfall is forecast to grow to 250,000 tradespeople by 2030.

•    Last year the Committee on Fuel Poverty noted that: “Currently the major energy efficiency programmes are targeted at the owner occupier sector (e.g. Energy Company Obligation, Home Upgrade Grant, Great British Insulation Scheme) or the SRS (Social Housing Decarbonisation Fund). Previously the Committee on Fuel Poverty argued that the PRS be treated as a commercial sector as landlords are effectively managing a business that should meet required standards. Landlords could be helped to meet these standards through tax offsets for improvements, loans or potentially grants for landlords with a low profit margin in areas of low rental value.”

•    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.