UK Government to consult on EPC C proposals for the PRS
The Secretary of State for Energy has committed to boosting minimum energy efficiency standards by consulting on proposals for private and socially rented homes to achieve Energy Performance Certificate C or equivalent by 2030.
Privately rented homes can be rented out if they meet Energy Performance Certificate E, while socially rented homes have no minimum energy efficiency standard.
Reiterating the commitment, Ed Miliband MP stated at the 2024 Labour Party Conference they want to lift over one million households out of fuel poverty, with their plan for the biggest boost to home energy standards.
02 AUG 2024
ENERGY EFFICIENCY TARGETS FOR PRS TO BE REINTRODUCED
With the consequences of high energy bills amid a cost-of-living crisis, many tenants are exposed to draughty homes and expensive bills, alongside the consultation for Decent Homes Standard, the UK Government wants to transform all round living standards.
23 SEP 2024
DECENT HOMES STANDARD MOVING FORWARD ACROSS ALL RENTED SECTORS
Propertymark understands that property agents want to see more energy-efficient homes, but new rules and requirements must be realistic and achievable for all tenures. The consultation process must highlight the different property types across the rented sector to ensure the targets, guidance, and funding prioritise the most difficult to decarbonise.
A new energy efficiency grant to upgrade properties
The UK Government has also announced a new Warm Homes: Local Grant for low-income homeowners and private tenants with the support of their landlords to help with energy performance upgrades and the introduction of cleaner heating.
The grant is due to start on 1 April 2025, will run for 3-5 years and will be delivered by local authorities. It contains two £15,000 cost caps per home, one for energy performance and one for Low carbon heating measures totalling £30,000 per home; the income threshold for the scheme will be £36,000. This is a welcome addition. However, it remains to be seen how it will work for landlords and tenants in practice
Extending and updating existing schemes
Additionally, a commitment has been made to continue the Public Sector Decarbonisation Scheme and the Warm Homes: Social Housing Fund, which provides up to £7,500 grant funding per home and replaces the Social Housing Decarbonisation Fund to support social housing providers and tenants.
IMPROVING THE ENERGY PERFORMANCE OF PRIVATELY RENTED HOMES IN ENGLAND AND WALES CONSULTATION PROPOSALS INCLUDE
- To set higher minimum energy efficiency standards using new metrics as proposed in the Reforms to the Energy Performance of Buildings Regime consultation, following an approach that prioritises fabric improvements.
- Should landlords be required to spend up to a maximum of £15,000 per property on improvements to meet the standard, after which they could register a 10-year exemption to continue to let the property if it does not reach the standard?
- Should the higher standard apply to new tenancies from 2028 and that all tenancies be required to be compliant by 2030, or to have registered a suitable exemption?
- Privately rented homes that achieve a score of band C against existing EPCs, before new EPCs are introduced, would be considered compliant with the higher standard until those EPCs expire.
- Whether to introduce an affordability exemption that lowers the cost cap to £10,000 for some properties and how this could be implemented.
- Whether to increase the scope of the PRS Regulations to include short-term lets to ensure a consistent standard between privately rented homes and short-term lets.
- What regulatory measures could be used to drive the installation of smart meters in privately rented homes?
- Whether there are other instances in which exemptions should apply under the existing exemptions regime.