Government rows back on EPC changes for the private residential rented sector
On 20 September 2023, whilst speaking about a range of green policies, Rishi Sunak announced that proposed energy efficient targets for households, including rental properties, would not be introduced as anticipated.
Currently, the Minimum Energy Efficiency Standards (“MEES”) provide that all privately rented property in England and Wales must have an Energy Performance Certificate (“EPC”) rating of ‘E’ or above.
Following a consultation to tighten up MEES in this area in 2020, a raft of changes to the existing rules was proposed, including:
- raising the minimum EPC rating from E to C to be enforced from 1 April 2025 for new tenancies and from 1 April 2028 for existing tenancies;
- raising the costs cap for complying with the penalties from £3,500 to £10,000 per property. It was envisaged that this would bring more than 90% of D-rated properties and almost 60% of E-rated properties to a C rating.
A study by Shawbrook Bank using its internal data found that 80% of landlords had already prepared for the 2025 EPC deadline, but this shock move means that there is now no deadline for private landlords to upgrade D or below rated properties.
Subcribe to news and views"But under current plans, some property owners would’ve been forced to make expensive upgrades in just two years’ time. For a semi-detached house in Salisbury, you could be looking at a bill of £8,000. And even if you’re only renting, you’ll more than likely see some of that passed on in higher rents. That’s just wrong. So those plans will be scrapped, and while we will continue to subsidise energy efficiency - we’ll never force any household to do it." Rishi Sunak on Net Zero: 20 September 2023
https://www.gov.uk/government/speeches/pm-speech-on-net-zero-20-september-2023
