The government must “get realistic” over the difficulties involved in reaching Net Zero targets when dealing with older properties in the private rental sector, it’s been told.
The Propertymark trade body says it’s supportive of the government’s Net zero aim, but in evidence given to a formal consultation progress it says there will be huge impacts on landlords and the sales and lettings sectors, especially given the short deadlines and absence of any apparent financial support.
The government has made clear that it will move towards a situation whereby it will be mandatory that all properties let out on the private rental market will have an Environmental Performance Certificate of at least a B by 2030. It has given a cost cap of up to £10,000 for landlords to transform properties - some very old and poorly-performing on EPCs - to meet the new standard.
Propertymark says: “We warn that the devastating impact of the pandemic, confusion over the absence of a long-term strategy and the lack of financial support, is likely to lead to further shrinkage of supply in the private rental system. This is going to be hardest felt in parts of England and Wales with the lowest house-price values and subsequently where economic growth is sluggish.”
And it continues that “the government must get realistic to the challenges in decarbonising the PRS which has some of the oldest housing stock, most off-grid properties and high numbers of vulnerable tenants. Landlords need to be supported in improving stock gradually otherwise we may see a continuation of landlords exiting the market.”
Propertymark’s submission to the government’s official consultation on the Net Zero policy calls for a package of financial and taxation incentives to support landlords get their properties up to scratch while continuing to provide housing options for many.
These include:
- The reintroduction of the Landlords Energy Saving Allowance (LESA), which let landlords claim on their income or corporation tax return against the cost of buying and installing certain energy saving items. Tax relief was for a maximum of £1,500 per property;
- Additional funding at local authority level that is tenure blind that addresses the challenges the PRS has in obtaining grant funding;
- Implementing a new streamlined Green Homes Grant that is flexible to the sector’s needs;
- Considering tax incentive measures such as a reduction in VAT for energy efficiency measures or incentives for landlords and home buyers through stamp duty.
Propertymark also calls on the UK government to embark on a national communications campaign for tenants, landlords and owner-occupiers.
“A central part of enabling a retrofit revolution on the path to net zero will be adequately conveying the wider benefits to homeowners and landlords” it says.
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Net zero makes zero sense
"all properties let out on the private rental market will have an Environmental Performance Certificate of at least a B by 2030"
You what? B? 2030?
Quite! Where did those targets come from?
Yes the B by 2030 has been a little heard of proposition thats been out there for a long time. Think not a lot has been said and we just haven't thought much of it since we're all still thinking about achieving C's and if it will ever get put into law- has been two years they've had us in limbo and the 2025 deadline (if left at 2025) is looming large
Saul - but the article says its been made clear by the Gov't? You say little heard proposition?
We have the 'Minimum Energy Performance of Buildings (No. 2) Bill' going through parliament now which 'makes it clear' that it's a C by 2025 for the PRS.
Going through Parliament? I can see that it had a First Reading, but then why the 'Improving the energy performance of privately rented homes' consultation that ended in January 2021 (results of which haven't yet been released). If this consultation was to affect the Bill, then why are the results not available. If the consultation was entirely separate to the Bill, why was the Bill allowed even a First Reading whilst almost identical consultation was already going through its motions?
Something doesn't make sense...
Not an energy performance certificate… as well as the B and 2030.. who’s writing these articles?
The government are in total disarray, they cannot bring anything in, all this will be kicked into the long grass.
B? I thought C was the new target if at all? Perhaps the article is wrong.
I’m not getting one of mine to a C anyway due to rental reform. It’s going.
I am sure that is how many people are thinking, Nick.There is no point in investing in the property when the business is no longer viable because you are no longer in control of the house due to the loss of Section 21.
I’m pretty sure I read it correct but correct me if I’m wrong, but did I see epc B by 2030?
On epc I got some of them can’t even reach a B 🤦♂️
Why would anyone care about EPC, when THE WHITE PAPER Is still being pushed through and Section 21 being removed, EPC hardly relevant when you have lost ownership.
So Michael going forward surely that means with an EPC C or lower we cannot continue to let but with no S21 we cannot evict!!
Do we then have to just transfer ownership and give the tenants a kitty to pay for their ‘wear and tear’ and we will be free
No you can still let without an epc C. You have to spend 10k per property towards achieving it then claim an exemption. Hardly a pleasant pill to swallow when a lot of the epc improvement stuff isn't realistic anyway.
Like everything else with this government there word is worthless. I’ve been working towards C over the last month and now this drivel. If we get to A no doubt it will then be A+ and so on. They won’t stop until our sector like every other government gets involved in is totally destroyed. From the car industry to mines, steel, pubs and any private enterprise you can trust a Tory to wreck it . The party of big businesses and deals in dark corners.
Jahan Khan, certainly looks that way, then again we won’t have to house them if we are not there.
iHowz, one of the original landlords Associations used to be small LL associations I think before NLA before they were gobbled up and had to reinvent themselves. Anyhow they have a good campaign going for over a year on the consequences of removal S.21, check it out take a look.
I’ve said it before , epc is the tool they’ll use to destroy the working and middle class who’s only assets is property
Won’t be able to sell or rent or get a mortgage unless it’s a b , which is hard enough now and when they move the goalposts in 2030 will be totally impossible
You’ll quite literally own NOTHING
Yes George. Thats how it feels ever since George Osbourne thought 'we cant be having these people climb above their station. Who do they think they are' break their ambition put them back in their place. Thing is these blue haired mob have the same sentiment
Won’t be able to live in your own house either !
They’ll knock it down and build you a nice rabbit hutch which you’ll rent as long as you comply ..
Build back better - for them that is , most certainly not you !
Given that there is a new EPC algorithm around the corner what does EPC B or C even mean?
It means we get fleeced, whatever letter of the alphabet they wish to call it.
I think we should be more focussed on the corresponding number so a D68 then becomes a C69. Going forward I expected Gov to fudge it by suggesting it be C67-68 there you go problem sorted after we have all made major decisions on what property to sell or keep and improve. LL's have given up as its so difficult to attain whereby Gov could have suggested all properties to have 300mm insulation as start. Cheap sensible faster return on our investment to save the tenants energy bill
We need a large protest. We never voted for this. This was not on any policy I recall.
Sloppy writing or a mistake this … Non-Domestic Private Rented Sector Regulations of EPC B by 2030 not domestic.
Both a bit of a joke given the income made on property varies massively by region.
Yep. From the bill....
7. Rented non-domestic buildings All rented non-domestic buildings must be EPC Band B by 2030, subject to the exemptions under subsection (2).
Well done, you’ve just reduced my blood pressure.
I. Thank God for that.
I understand their original plan was to bring in a C rating for all new tenancies in 2025 and then for all existing tenancies by 2028 and then the B rating for all new tenancies in 2028 all tenancies by 2030. It is not worth it for me to upgrade properties to a C let alone B.
Its epc c by 2024 was the first bs now epc b by 2030?
Just make us sell. It's more honest and the same result. I'd respect them more if they just came out and said "all PRS landlords must sell up by 2030"
Me too Rik. But they don’t do honest. Sly and dishonest is the way they roll.
Got to get through 2 houses or the Lord's may throw some of it out? Any thoughts? Or rubber stamp?
The stamp on this will be 100% rubber !
Elizabeth unlikely the lord's will improve anything, it's full of party apparatchiks.! It's Charlie who's pushing this stuff, with all those palaces and staff he must have a phemonel carbon footprint.
It is absolutely crazy to suggest that if you claim to be saving the planet, only rental property needs to be subject to MEES. This nonsense is especially true when you consider the govt are trying to get rid of rental property and convert it to owner occupier! If they’re insisting on hitting rentals hard whilst not requiring owners to do the same then we’re really not saving anything. And since the rest of the planet doesn’t insist on this either, I don’t see exactly who this is helping.
You just KNOW what’ll happen next, don’t you? Landlords exiting the market will be forbidden from selling unless they can prove their property is a B/C. We’ll have to pay the upgrade costs so the putative homeowners can benefit from our efforts.
Yes James whilst owner occupier will still have an E grade with no hassle as they want to protect their vote capture
So if the property is privately held it’s a menace to global warming but if it’s suddenly owned by the government all the problems disappear
Funny how that works …
Well conspiracy theorist I am. You can buy your council house at a reduced rate.....why not your private rented one.!
What next. We do it up for them. Secret agenda somewhere in our midt
They are giving big hand out to buy rabbit hutches, come in Harsh Reality put a stop to it they are getting hand outs, don’t stand for it.
Councils should focus on the EPC of new builds and forget about the old buildings m/ properties. It is difficult/too expensive in some cases, to improve their EPC
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