A spanner in the works: How the Renters’ Rights Act could hamper your energy efficiency plans

While most discussions on Renters’ Rights have centred on the changes such as the abolition of Section 21 and the loss of the fixed term, its potential impact on the Government’s EPC C plans has flown under the radar. Public affairs officer Mia Rotaru explains more. 

Under the Government’s plan, all privately rented properties are required to achieve EPC band C by October 2030.  

With an estimated 2.5million homes currently falling below this standard, this will require substantial improvements, for example upgraded insulation, new heating systems, and double glazing – work which can be challenging to complete while tenants are living in the property. 

Previously, landlords could wait for a tenancy to end or use Section 21 to create a void period in which to carry out works. Now that option will no longer be available. 

Tenancies are open-ended, and possession requires a legal ground. This creates a practical question: How do you retrofit a property when the tenant has no obligation to go?

What’s the solution?

The only viable possession route for retrofit is Ground 6, which applies where a landlord intends to demolish or substantially redevelop a property and cannot do so with the tenant in place. 

However, this test is quite narrow. "Substantial” requires a high standard, usually involving structural or transformative changes that make the property uninhabitable.  

Many energy efficiency upgrades, even costly ones, probably won't meet this threshold.  

There are also technical limitations:  

• The landlord must have owned the property before the tenancy started,

• The tenancy must have lasted at least six months.  

In practice, Ground 6 will only apply in a limited number of situations. 

Importantly, if using this ground, you will not need to provide alternative accommodation if you gave your tenant notice before the tenancy started that you intended to use Ground 6.

The role of exemptions

Where tenant cooperation is required, landlords can register a third-party consent exemption under MEES. This offers protection from enforcement, provided genuine attempts to obtain consent are made AND can be evidenced. 

However, this is only a temporary solution. The exemption lasts five years or until the tenancy ends, whichever comes first. It does not remove the requirement to meet EPC C, it simply delays it. 

Crucially, once the tenant leaves, the exemption is no longer valid, and you will need to make the improvements.

Careful planning is key

With stronger enforcement on the way, including fines of up to £30,000 per property, the cost of inaction is rising. 

To prevent financial penalties and last-minute disruptions, landlords should act proactively by planning retrofit work carefully and maintaining transparent communication with tenants. 

In this evolving environment, effective communication and thorough preparation are now crucial, not optional.

More information

• For more information about the proposed changes and the latest government announcements on the Warm Homes plan, EPCs, and MEES, click here. 

• The NRLA’s award-winning Training Academy runs an energy efficiency course giving you all you need to know on energy efficiency and how to access funding. Click here for more information and to book.        

• To help heat networks prepare for registration, Ofgem haas added more accessible guidance on how the registration process will work. For more information click here.