Stricter Rental EPCs by 2025? Forget it, says the NRLA

Stricter Rental EPCs by 2025? Forget it, says the NRLA


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Plans to improve the energy efficiency of private rented housing have no hope of being met following the government’s failure to respond to a consultation which closed two years ago.

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That’s the view of the National Residential Landlords Association.

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The government proposed a target that all new tenancies in the private rented sector should be in a property with an energy performance rating of at least a ‘C’ by 2025; additionally it proposed that this be extended to cover all tenancies in the sector by 2028.

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Yet despite the consultation closing in January 2021 the government has so far failed to provide any response, leading to uncertainty for landlords and others in the sector.

In view of the failure to provide any concrete steps forward the NRLA wants the government to make clear that the dates envisaged in the original consultation are now unrealistic. It’s also calling for a definitive timetable for publication of a response to the consultation and any required legislation thereafter.

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The government also proposes that all landlords should be expected to pay up to £10,000 to make the necessary improvements to meet the proposed targets.

The NRLA is calling instead for the amount that landlords should be expected to contribute to be linked to average market rents in any given area. Under the NRLA’s proposals this would mean the amount a landlord would need to pay would taper from £5,000 to £10,000, taking into account different rental values (and by implication, property values) across the country.

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Alongside this, the NRLA is calling for a package of fiscal measures to support investment. This should include the development of a new tax allowance for landlords undertaking works towards reaching Net Zero.

NRLA chief executive Ben Beadle says: “We all want to see properties as energy efficient as possible. However, the government’s delay in responding to its consultation on energy standards in the private rented sector means its plans are dead in the water. The lack of clarity is playing a major part in holding back investment in the homes to rent tenants desperately need.

“In the interests of certainty, the government needs to admit what we all know, namely that it has no hope of meeting its proposed energy targets for the rental market.

“The plans as they currently stand, rely on a misguided assumption that landlords have unlimited sums of money. The proposals fail to accept the realities of different property and rental values across the country, and that the private rented sector contains some of the most difficult to retrofit homes.

“Ministers need a smarter approach with a proper financial package if we want to ensure improvements to the rental housing stock.”

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