Government’s energy efficiency plans are ‘dead in the water’

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The private rented sector has no hope of meeting the deadline to improve EPC ratings following the government’s failure to respond to a consultation which closed two years ago, according to the NRLA.

It is calling for a definitive timetable for publication of a response to the consultation and any following legislation. The NRLA also believes the amount landlords are expected to contribute should be linked to average market rents in any given area. This would mean it would taper from £5,000 to £10,000, taking into account different rental values (and by implication, property values) across the country. It suggests developing a new tax allowance for landlords who are undertaking works towards reaching Net Zero.

Proposed target

Back in January 2021, 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 – extended to cover all tenancies in the sector by 2028. The government also proposed that all landlords should be expected to pay up to £10,000 to make the necessary improvements to meet the proposed targets.

NRLA chief executive Ben Beadle says the government’s delay means its plans are dead in the water while the lack of clarity is playing a major part in holding back investment.

Unlimited sums

“The plans as they currently stand, rely on a misguided assumption that landlords have unlimited sums of money,” he adds. “They 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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