Propertymark says stricter rules for EPC ratings in the private rental sector must be backed up with incentives and financial support.
The trade body is responding to widespread speculation that the government is going to legislate for private rental sector homes to meet EPC rating C, possibly as soon as 2030. It is not known whether there would be a cap imposed on landlords’ spending to minimise the cost.
The Daily Telegraph has estimated that the cost of upgrading a property from the worst rating – G – to a C would be around £27,000. Spending just £10,000 would bring 90% of D rated properties to C but only 60% of E rated properties up to standard.
Now a statement from Propertymark says it “wants to see more energy-efficient homes, but, as we have long said, the rules and requirements must be realistic and achievable for the sector. A poll conducted in February 2024 revealed that financing energy efficiency improvements was a key reason why owners have not upgraded their property’s energy efficiency, with over 35% of people stating they couldn’t afford the upfront cost.”
And the trade body adds: “Any future targets must be fully backed by legislation that incentivises and encourages people rather than penalising them.”
The likely target of 2030 is just the latest in a roller-coaster of legislation and speculation about improve EPC ratings.
Propertymark adds: “Constant change around energy efficiency measures has had a negative effect on the private rental sector for some time. In our August 2023 report called Energy Efficiency in UK Property: Where To Go From Here? we cited feedback from property agents that said the lack of communication and guidance from governments on energy efficiency regulations was the cause of confusion and stress across the sector.
“That is why Propertymark welcomed Rishi Sunak’s decision to drop the targets in September 2023, as it offered some relief to hard-pressed landlords worried by the potential investment, at a time when budgets are squeezed for everyone.”
Specifically on the Boiler Upgrade Scheme which ran from April 2022 to December 2023, only 19,000 installations were completed with 57% of those being properties in rural areas. Nearly 20% of grants went to properties with no previous heating system. This is despite the grant provided by the scheme rising from £5,000 to £7,500 for the final months of the scheme.
“Our member feedback shows that the current level of support provided by the UK Government does not meet the costs of installing low-carbon heating systems, meaning that few agents and their customers are willing to engage with support programmes” states Propertymark.
