The National Residential Landlords Association (NRLA) has called for clear guidance regarding Labour’s plans to require landlords to upgrade all private rental properties to an EPC rating of ‘C’ by 2030.
This target, initially set by the Conservatives but dropped a year ago, has been revived by Labour’s new Energy Secretary, Ed Miliband. During his speech at the Labour conference in Liverpool, he stated, “We all know that the poorest people in our country often live in cold, draughty homes. It is a Tory outrage. This government will not tolerate this injustice and we will end it.
“Being Labour means we raise our sights to tackle injustice. We will go further and faster than promised in our manifesto by ensuring every rented home meets decent energy efficiency standards. Warmer homes, lower bills, and over one million people lifted out of fuel poverty. That’s the difference a Labour government makes.”
Chris Norris, the policy director for the National Residential Landlords Association (NRLA), has voiced the association’s commitment to improving energy efficiency across all rented properties. He stated, “The NRLA aims for all rented properties to achieve high energy efficiency. This is crucial not only for the environment but also for the comfort and well-being of tenants. However, it is equally important that the Government’s approach to this goal is clear and comprehensive.”
Norris highlighted that the rental sector faces unique challenges, particularly due to the age and condition of many properties within the UK’s housing stock. “The Government needs to recognise that the sector includes some of the oldest and most difficult properties to upgrade. These buildings may require extensive work, and it is essential to account for this in any proposed changes to regulations or standards.”
To successfully implement energy efficiency improvements, Norris emphasised the need for a clear trajectory outlining expectations and deadlines for landlords and property owners. “The sector must have a well-defined timeline that specifies what is expected and when it must be achieved. This will provide landlords with the necessary guidance to plan and budget for the required upgrades.”
In addition to setting expectations, Norris stressed the importance of having a sufficient number of skilled tradespeople available to carry out the necessary work. “It is vital that the plan includes provisions to ensure that there are enough qualified tradespeople to handle the upgrades. Without the proper workforce, even the best-laid plans for energy efficiency improvements may fail to be realised.”
The Committee on Fuel Poverty has stressed the critical need for a dedicated financial package to support investment in energy efficiency measures within the private rented sector. At present, this sector is the only housing tenure that does not have a tailored support programme for upgrading homes. This lack of targeted assistance can hinder landlords’ ability to make necessary improvements and ultimately affects tenants who might benefit from better energy efficiency.
According to official data from 2022, nearly 45% of private rented properties in England now hold an Energy Performance Certificate (EPC) rating of at least a C. This figure represents a significant increase compared to 2012, indicating progress in energy efficiency within the sector. However, the challenge remains that a substantial portion of the housing stock continues to fall short of desirable energy standards.
It’s worth noting that about one-third of homes in the private rented sector were constructed before 1919. This age demographic is significant because older properties are often more difficult to upgrade to modern energy efficiency standards. These homes typically feature outdated insulation, heating systems, and other structural limitations that complicate efforts to improve their energy performance.
Moreover, research indicates that the UK could experience a shortfall of approximately 250,000 tradespeople by the year 2030. This projected deficit poses a considerable challenge for landlords seeking to undertake energy-efficient upgrades. Without a sufficient workforce, it may become increasingly difficult to address the energy efficiency needs of the housing stock, leading to a stagnation in progress.
To effectively tackle the issue of energy efficiency in rented housing, the Committee on Fuel Poverty suggests various supportive measures for landlords. These could include tax offsets for improvements, loans tailored for energy efficiency upgrades, or potentially grants for landlords operating on low profit margins, particularly in areas with lower rental values. Implementing such strategies could help bridge the gap in resources and facilitate necessary upgrades, benefiting both landlords and tenants alike.
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