The proposed Decent Homes Standard originally outlined in the government’s election manifesto has been proposed to come into force in 2030. 

With the government expected to introduce stricter regulations in the coming years, potentially requiring all rental properties to achieve an EPC rating of B, by 2040.

With finer details currently lacking, the prospective plans would see landlords become responsible for ensuring their rental properties have a minimum Energy Performance Certificate rating of C, by 2030. 

Current regulations require some rental properties to meet the requirements set out by band E only. 

However, with over 60% of rental properties in England and Wales currently rated below C on the EPC scale, many landlords face a significant challenge in upgrading their properties by 2030. Certain properties may be exempt from the new requirements, such as listed buildings, if renovations would alter the buildings’ character or if upgrades exceed a defined cost cap. 

EPC ratings are based on the cost of heating and powering a home, which means installing options such as heat pumps when looking to improve EPC ratings may not have the desired result. 

This is on account of the cost of electricity needed to power such solutions and because, with most heat in a home lost through walls, such solutions will only work when coupled with upgraded insulation. 

With this in mind, the average cost of bringing a rental property up to band C EPC rating, versus the E currently required, has been estimated to be around £8,000 – meaning landlords face a steep financial burden on the road to meeting 2030 targets. 

As a result of these steep financial costs, many private landlords are being pushed out of the rental market. 

Failure to meet the proposed EPC ratings may result in fines of up to £5,000 or leave a property deemed as being unrentable and when coupled with stricter regulations, higher taxes, and expanded tenant rights, property investment is less viable. In fact, a survey from GoodLord suggests that 30% of landlords have sold or listed a rental property in the past year, and a further 17.4% are considering reducing their portfolios in the coming year. 

Home insulation solutions could provide a cost-effective method to improve the EPC rating of a property, as well as reduce energy bills and help the environment by reducing CO2 emissions. 

Home insulation is a heat-saving solution that can be fitted to solid walls, in cavity walls, under floors, and even as insulated plasterboard over existing plaster walls.

Nicholas Donnithorne, UK Technical Manager at Rentokil Property Care outlines the potential benefits of home insulation for landlords:

• Improving your EPC rating – The EPC rating is used to illustrate how much it costs to heat and light a property, with ways you can make it more energy efficient. Insulation is one of the most effective ways of increasing the rating and can be much cheaper than other alternatives;

• Savings on energy and heating bills – Insulation creates thermal barriers around a property, helping to keep heat in, meaning a property stays warmer for longer.  This could ultimately decrease costs for tenants as less energy will be required to heat the space;

• Environmental savings – The less energy needed to heat a property, the lower the carbon footprint that will be left. This means less energy is burnt which is good for both wallets and the planet;

• Adds to your property value –  A good EPC score can increase the value of your property and might make it easier to sell or rent. Whether you’re letting out or selling your property, an EPC score is a good indicator of an energy-efficient home – so a high score will mean less money spent on bills in the long run for those moving in.

To get ahead of the proposed 2030 legislation, there are several steps landlords can take to update their properties now and help their tenants save on bills and heating:

• Loft Insulation: It is estimated by the Energy Savings Trust a quarter of heat is lost through the roof of an uninsulated home. Loft insulation is simply material that reduces the rate at which heat is lost from your property through the loft space. In most homes, this typically involves rolls of insulation being laid between and over the ceiling joists. It can increase the value of a property and ease a sale or letting by improving the EPC rating;

• Insulating plaster systems – Insulating plaster is designed to reduce heat loss through solid walls to help maintain a comfortable room temperature without overreliance on central heating;

• Underfloor insulation – Reduces energy bills and provides warmer floors that are more comfortable to walk on.