Louisa Sedgwick, Managing Director for Mortgages at Paragon Bank has written an article for LandlordToday, which can be seen here

In it, she says that the proposal for minimum Energy Performance Certificates (EPC) for rental properties has resurfaced, with Labour pledging to clamp down on energy-inefficient homes by 2030. This echoes earlier government consultations that aimed to introduce minimum EPC ratings of C for new tenancies by 2025 and all tenancies by 2028. However, these ambitious targets were met with skepticism due to their tight timelines and the logistical challenges involved.

The Labour Party has yet to release detailed plans, but there are significant concerns over whether such a large-scale project could be implemented within a reasonable timeframe. With around 2.68 million private rented homes in England currently rated at EPC D or below, upgrading these properties at the proposed pace would require upgrading approximately 1,469 homes every day—a figure deemed unrealistic given the current state of the housing and construction sectors.

Key challenges include:

1. Lack of clear guidance on which technologies or approaches will be preferred for improving energy efficiency in rental properties.
2. Workforce shortages and a lack of skilled labor, especially given the government’s simultaneous commitment to building 1.5 million new homes.
3. The need for financial support and resources to enable landlords to make these costly upgrades, as many are already dealing with rising regulatory pressures and uncertainty in the sector.

Despite the obstacles, landlords have made significant strides in improving energy efficiency. The English Housing Survey shows that rental properties rated EPC A to C have increased from 830,000 in 2012 to 2.2 million in 2022, with rental properties now boasting higher energy efficiency rates than those in the owner-occupied sector.

Landlords, who often purchase properties requiring upgrades, have shown a willingness to invest in improving their stock. Initiatives like refurb-to-let products are emerging to help landlords upgrade properties, but a coordinated effort between the government and the rental industry is essential. Rather than implementing punitive regulations, landlords are calling for policies that support and incentivize further energy efficiency improvements, ensuring the upgrades are manageable and realistic.

To succeed, the government must:

• Work with the industry to create a workable timeline.
• Provide clear guidelines on the technology needed for upgrades.
• Ensure there is enough skilled labor and financial support to make these changes achievable.

With collaboration and well-thought-out policies, landlords could continue improving the energy efficiency of the rental stock without being overwhelmed by impractical regulations.