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Improve rental sector EPCs? A pipedream …

Government ambitions to improve the energy efficiency of the private rental sector are just “a pipedream” without financial assistance according to the leading industry trade body.

Analysis by the National Residential Landlords Association shows that only five per cent of private rented households have received government help to fund energy efficiency measures despite having the greatest need.

Although more of those classed as fuel poor live in the sector, private rented households received only half of the help given to those in the social sector.  

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According to the English Housing Survey, a third of private rented sector housing was built before 1919. This is the hardest to treat and accounts for a larger proportion of the sector than for any other housing tenure. Across England’s entire housing stock, 84 per cent of properties built before 1919 had an energy rating or D or worse.

With 62 per cent of private rented homes having an energy rating of D or below this will largely account for why 37 per cent of all households classed as fuel poor are in the private rented sector compared to 23 per cent in the social sector.

Data shows that 97 per cent of private rented properties with an energy rating of D or lower could reach C or better.

Despite this, just five per cent of private rented households across England have received any financial support under government schemes to improve the energy efficiency of housing. 

This compares to 21 per cent of owner-occupiers, 12 per cent of council households and 11 per cent of those in housing association properties.

The government want SL all new private rented tenancies agreed from April 2025 to be in properties with an energy performance rating of C or better.

According to government figures, it would cost an average of over £7,500 to bring rental properties needing it to an energy rating of at least C.  

The NRLA claims this makes the government’s ambitions to improve the energy efficiency of the rental housing stock a pipedream when the average net annual rental income for a private landlord is less than £4,500.

That is why the association is calling for a bespoke financial package to support the improvements that are needed.

Among the NRLA’s proposals is the development of a scrappage scheme to upgrade windows in private rented homes. A higher proportion of properties in the sector have no double glazing than any other tenure.

It is calling also for energy efficiency measures carried out by a landlord to be offset against tax as repair and maintenance, rather than as an improvement at sale against Capital Gains Tax. This would address anomalies including that whilst replacing a broken boiler is tax deductible, replacing one for a more energy efficient system is not.

 

NRLA chief executive Ben Beadle says: “We all want to see energy efficient rental homes. They cut bills for tenants, make homes more attractive to potential renters and help the country to achieve its net zero commitment.

“The Chancellor needs to develop a financial support package that works for landlords and tenants. This should especially be targeted at the hardest to treat properties where the cost of work will be prohibitive for landlords. In this way, he will also be doing the most to help the fuel poor.”

Want to comment on this story? If so...if any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals on any basis, then the post may be deleted and the individual immediately banned from posting in future.

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    Until the EPC assessment accurately reflects the condition of properties, does not make invalid assumptions, gives realistic upgrades that can be achieved without ripping the fabric of the property apart and stops penalising electricity because of price most LLs will just sell any property below a C.

    The effect of this policy will not improve the living conditions for tenants but it will reduce the stock available and increase rents for some whilst pushing others into the arms of rogue LLs.

    This policy might result in a tiny decrease in carbon emissions but I believe it will decimate the PRS. Personally I will be selling 7 out of 11 properties, 3 Victorian terraces that require over £10k each investment to reach EPC C (not guaranteed) and 4 properties without gas, that cannot reach C due to the cost of electricity, ironically inflated hugely due to the green subsidies slapped on them.

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    Hi,

    "4 properties without gas, that cannot reach C due to the cost of electricity"

    what does this bit mean?
    How does the cost of electricity stop the property reaching C?

    thanks

     
  • George Dawes

    You’ll own nothing…

    Privately owned property is next for the hit list , the next decade is going to be hell on earth for the prs and everyone else

  • George Dawes

    By 2035 all property including owner occupied will have to be c rated or better

    Just think about that … so all property that can’t achieve that rating will basically be worthless. You can’t rent it , can’t sell it and can’t get a mortgage on it .

    You can’t even live in it !!!

    The government will take it off your hands then rent it back to you . They’ll be exempt from the epc rules of course.

    Theodor Cable

    But if my property does get a C or better, I will be quids in due to the shortage of so many houses being unusable?????????

    So why is that bad for me......With a shortage, my rents will go sky high.

     
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    Theodor I agree, I'm going to have a problem getting most of mine up to a C but as most of them owe me peanuts, and no borrowings, I can afford to spend money on them getting them up to a C , or I could sell some and use the proceeds to up grade the ones I chose to keep, either way with the shortage the rents will climb, it follows that tenants wages will have to increase as will housing benefit payments if they don't there will be thousands more sleeping in shop door ways, something has to give somewhere along the way.

     
  • Theodor Cable

    Madness

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    Why all this technology using up all the energy destroying the World. I remember windmills, all the old woollen mills and the grain mills driven by water wheel from river or small stream eve, no harm to the Planet, is technology destroying us.

  • icon

    Well if this moronic policy is enforced I and thousands of other landlords will be forced to start selling up by 2030. It will be hilarious watching the government and local councils squirming and trying to cope with thousands and thousands of x renters and the illegal immigrants they keep importing screeming for housing these idiots can't provide. What a bunch of prats!

  • icon

    i am convinced that johnson has dementia

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