Government U-turn as Warm Homes Plan sets EPC C deadline for 2030

Property118

Government U-turn as Warm Homes Plan sets EPC C deadline for 2030

The government has U-turned on its plans and scrapped the 2028 deadline for new tenancies to meet EPC C targets, though the cost cap has been reduced.

The government has published its Warm Homes Plan, which will require landlords to ensure their rental properties meet minimum energy-efficiency standards.

Energy Secretary Ed Miliband says the plan will “call time on landlords who don’t meet energy-efficiency standards” and all private rented properties will need to meet EPC C targets by October 2030.

However, the government has yet to clarify how it will work with landlords to achieve these standards, with industry experts warning energy efficiency upgrades will be costly for landlords.

All properties need to meet EPC C targets by October 2030

In a video on X, formerly Twitter, Mr Miliband said the Warm Homes Plan “will call time on private landlords who meet proper energy-efficiency standards.

“If you are a tenant, you deserve to live in a safe, affordable and warm home.”

The government has confirmed under the Warm Homes Plan, all private rented properties will need to meet EPC C targets by October 2030, unless the property has a valid exemption.

Under the plans, landlords will be able to choose between the smart or heat metrics, and the cap on the amount they are expected to invest to meet the new standards will be reduced from £15,000 to £10,000.

The cost cap will be lower where £10,000 would represent 10% or more of a property’s value.

Any spending on energy-efficiency works carried out since October last year will also count towards the planned cap, and the government will deliver a range of finance options, including Boiler Upgrade Scheme (BUS) grants.

Ben Beadle, chief executive of the National Residential Landlords Association (NRLA), said: “We have long supported the need to improve the energy efficiency of the rental housing stock. However, the government’s initial proposals were simply unrealistic and had no hope of being delivered within the timescales originally set out.

“The government has clearly listened to our pragmatic proposals to improve its plans, and we look forward to working with it to ensure its ambitions work in practice.”

Proposals are deeply concerning for landlords

However, many industry experts warn that the Warm Homes Plan proposals are deeply concerning for landlords, due to a lack of clear and long-term funding commitments.

Timothy Douglas, head of policy and campaigns at Propertymark, said: “While the ambition of the Warm Homes Plan to improve energy efficiency and tackle fuel poverty is acknowledged, the proposals as they stand are deeply concerning for landlords and agents across both the residential and commercial sectors.

“In the private rented sector, landlords are being asked to deliver, in many cases, substantial and costly upgrades to reach EPC C by 2030, yet this is being imposed without clear, long-term funding commitments, realistic delivery timescales, or sufficient flexibility for older, complex, and hard-to-treat properties.

“A phased and realistic approach would allow landlords to maintain the Decent Homes Standard, manage costs effectively, and contribute meaningfully to the UK Government’s ambition to achieve net zero by 2050.”

A one-size-fits-all approach to energy efficiency will not work

Mr Douglas adds the government has given little details for how commercial landlords will meet EPC B targets by 2030

He said: “Crucially, there remains no clarity on Minimum Energy Efficiency Standards for non-domestic property, despite expectations that commercial landlords will be required to meet EPC B by 2030. The absence of detail on interim targets, exemptions, enforcement, and financial support makes it impossible for landlords to plan responsibly or invest with confidence.

“Propertymark has consistently warned that a one-size-fits-all approach to energy efficiency will not work. Without certainty, genuine flexibility, and practical financial support, there is a serious risk that both residential and commercial landlords will withdraw properties from the market.

“This would reduce supply, drive up costs for tenants and businesses, and ultimately undermine the government’s stated objectives on affordability, energy efficiency, and economic growth.”

Compliance deadline of 2030 for all tenancies is unrealistic

Rob Wall, assistant director (Sustainability), British Property Federation, welcomed the 2030 deadline for private rented properties but warned it is still unrealistic.

He said: “At last we have some clarity on the government’s plans for domestic EPC reform and for new minimum energy efficiency standards for the private rented sector.

“We still believe a compliance deadline of 2030 for all tenancies is unrealistic, but we welcome the proposed transitional measures and the recognition that more consultation is needed to understand how the new EPC regime will work in practice.

“However, the government’s Warm Homes Plan has left commercial buildings out in the cold. The failure to provide any clarity on future minimum energy efficiency standards for the non-domestic private rented sector will do little to arrest the growing sense that Ministers don’t understand or see the case for supporting commercial real estate in its transition to net zero.”

“Further delays to clarifying EPC targets for commercial buildings will have a significant impact on investment and the UK’s competitiveness. While clarity on changes for domestic property will be welcome, the absence of a clear strategy to support the decarbonisation of commercial buildings risks undermining the government’s ability to deliver net zero by 2050.”

Landlords need clear guidance

Landlord organisation iHowz say they welcome the clarity on the 2030 EPC deadline, but due to it being provided at such a late stage, iHowz will push for more generous financial incentives and support to ensure homes can be retrofitted before the 2030 deadline.

Rodney Townson from landlord organisation iHowz said: “It is difficult to assess how many landlords will view this as too onerous, as without sufficient Fabric First Measures, to ensure adequate insulation, many of these measures will not be suitable for flats or other properties without space for the new equipment.

“The Warm Homes Plan presents both challenges and opportunities for landlords, requiring significant investment to meet the upcoming EPC C standard by 2030. While mandatory upgrades add costs, the accompanying government grants through the Boiler Upgrade Scheme and Local Grants offer vital support to install heat pumps and improve insulation, ultimately reducing tenant bills and cutting carbon.

“Our focus must be on ensuring landlords have clear guidance, timely access to these funds, and support to navigate the new EPC regulations, turning this into a shared success for sustainable, affordable, and compliant renting.”

The post Government U-turn as Warm Homes Plan sets EPC C deadline for 2030 appeared first on Property118.

View Full Article: Government U-turn as Warm Homes Plan sets EPC C deadline for 2030