Labour is expected to ease back on proposals that would have required landlords with listed buildings to install heat pumps and solar panels.
Under the planned reforms to energy performance certificates (EPCs), Energy Secretary Ed Miliband aims to ensure all homeowners upgrade their properties to a minimum EPC rating of C by the year 2030.
However, these proposed changes have raised concerns among landlords. Many have warned that, when combined with the stricter rules expected under the forthcoming Renters’ Rights Bill, these new energy standards could lead to more landlords exiting the rental market altogether.
In response to a written question in Parliament, Lord Hunt of Kings Heath, Minister of State in the Department for Energy Security and Net Zero, confirmed that the Government is now considering exemptions for homes that are of special historic or architectural significance.
When the energy performance certificate (EPC) policy was introduced in Parliament last August, ministers stated that landlords would be required to upgrade their properties to a minimum EPC Band C by 2030.
However, concerns have since been raised about the potential impact of these rules, particularly on properties with historic value. In a recent update, Lord Hunt of Kings Heath, Minister of State in the Department for Energy Security and Net Zero (DESNZ), clarified the current position.
He explained that existing regulations already allow for certain exemptions. These include scenarios where compliance with EPC standards would significantly alter the character or appearance of listed buildings. Such exemptions are designed to minimise disruption for tenants and to help maintain housing availability in the private rented sector.
Lord Hunt also noted that the Government is now actively reviewing the situation. He said steps are being taken to ensure that appropriate exemptions are considered for any future regulations that may be introduced.
This comes after a Parliamentary question was raised by Lord Truscott, who is also a landlord. In a House of Lords debate earlier this year, he acknowledged that increased regulation of the private rented sector was generally a positive move.
However, he warned that the mounting costs—particularly those tied to new EPC requirements—could make it financially unfeasible for many to remain in the sector. According to him, the financial burden might ultimately discourage investment in rental properties, which could have wider implications for the housing market.
Since 2018, landlords have been obligated to ensure their rental properties meet a minimum energy performance certificate (EPC) rating of “E” or higher. However, there are some exceptions to this rule.
One such exemption applies if a landlord has already invested £3,500 towards improving the property’s energy efficiency. Another applies when the necessary upgrades would require consent from neighbours, which may not always be granted.
Additionally, current regulations acknowledge the unique nature of listed buildings. In these cases, if carrying out the recommended energy efficiency works would significantly alter the building’s historic character or appearance, the property may not be required to have an EPC at all.
Net zero to cost up to £36bn
Ed Miliband’s push for net zero is projected to come with a hefty price tag, potentially reaching up to £36 billion. This estimate, based on analysis by The Telegraph, includes costs to landlords, housing associations, and taxpayers.
Across 85% of local authorities, upgrading qualifying properties could exceed £10,000 on average. These rising expenses are creating growing concerns among property owners.
One example is The Hon John Rous, who acts as landlord to around 440 residents in the village of Clovelly. He revealed that he had already invested over £1 million in modernising the town’s historic listed homes.
In response to these challenges, the Government is currently holding a consultation regarding exemptions to the EPC requirements. Proposed exemptions include a spending limit of £15,000 and a ten-year grace period for properties that initially cannot meet the new standards. This consultation is scheduled to conclude in May.
Megan Eighteen, president-elect of ARLA Propertymark, expressed concern over the feasibility of meeting EPC band C for many older homes. She highlighted that even some Victorian terraced houses may struggle to comply without considerable financial outlay.
She further pointed out that not even all newly constructed homes are achieving the desired energy efficiency levels, suggesting flaws in how the assessments are currently conducted.
Ms Eighteen emphasised the need for a practical and fair approach, one that balances the preservation of the country’s architectural heritage with its commitment to environmental goals.
A representative from the National Residential Landlord Association (NRLA) has expressed support for Labour’s acknowledgement of the difficulties faced by landlords of listed buildings when trying to meet stricter energy efficiency targets, particularly achieving an EPC rating of C.
The NRLA spokesperson emphasised that any forthcoming regulations should be both sensible and achievable. They stressed the importance of continuing to collaborate with the Government to ensure that future policies maintain a practical balance between environmental aims and property viability.
Meanwhile, the Government is also promoting the installation of heat pumps as part of its wider net zero strategy. It has set an ambitious target of 600,000 installations per year by 2028, aiming to reduce heating costs and emissions across UK homes.
A spokesperson for the Department for Energy Security and Net Zero (DESNZ) confirmed the Government’s commitment to implementing higher energy performance standards for private landlords. These measures are intended to improve efficiency and make homes more affordable to heat in the long run.
The Government is set to ease EPC regulations, scrapping tough targets for landlords with listed and historic properties. This move is seen as a significant win for the private rental sector.
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