Energy Performance Certificate (EPC) rating of C on their homes by 2030 (newly announced)

The government has confirmed that it wants tough new energy efficiency targets for the private rental sector. 

It says that up to 500,000 private rental households will be “lifted out of poverty” by 2030, with tenants “£240 better off per year.”

Under the plans, which were a Labour election manifesto pledge, private landlords will not be able to rent out homes from 2030 if they do not achieve an EPC C rating, up from the current level of EPC E.

At the moment, 48% of private rented homes in England are already EPC C or above and 2.5 million homes have a rating of D-G.

The government estimates the average cost to landlords of complying with the proposals to upgrade their properties at between £6,100 and £6,800 per home.

The higher standard would apply to new tenancies from 2028 and all tenancies would be required to be compliant by 2030.

The government says it is now seeking views from tenants and landlords on the proposals to boost living standards in the private rented sector and cut the cost of energy bills, which include:

• Offering landlords a choice over how to meet energy efficiency standards. This will require them to meet a fabric standard through installing measures such as loft insulation, cavity wall insulation or double glazing, before moving on to a range of other options including batteries, solar panels and smart meters;

• A maximum cap of £15,000 per property for landlords, with support currently available from the Boiler Upgrade Scheme, and Warm Homes: Local Grant which begins delivery this year;

• An affordability exemption, which would lower the cost cap to £10,000 and could be applied based on lower rents or council tax band;

• Requiring all landlords to meet the new standard by 2030 at the latest, providing an extra two years compared with previous proposals. Homes that are already rated A-C before the introduction of new Energy Performance Certificates would be considered compliant until they expire.

The government is also consulting on a revised fuel poverty strategy, which it claims will focus on improving the energy performance of homes, supporting low-income households with energy affordability and protecting them from high prices.

This follows planned reforms to empower Ofgem, the energy regulator, to become what the government describes as “a strong consumer champion, upgrading up to 300,000 homes through the Warm Homes Plan this financial year, and driving a new era of clean energy through the Clean Power Action Plan.”

The government statement this morning quotes Deputy Prime Minister and Housing Secretary Angela Rayner saying: “For far too long we have seen too many tenants plagued by shoddy and poor conditions in their homes and this government is taking swift action to right the wrongs of the past. Through our Plan for Change we are driving up housing standards, improving quality of life, and slashing energy bills for working people and families.

“Today is just one of many steps we are taking to deliver on our promise to transform the lives of millions of renters across the country, so families can put down roots and raise their children in secure and healthy homes.”

And Energy Secretary Ed Miliband adds: “For years tenants have been abandoned and forgotten as opportunities to deliver warm homes and lower energy bills have been disregarded and ignored. As part of our Plan for Change, these new changes could save renters £240 a year by raising the efficiency of homes to cut the cost of bills.

“These plans will also make sure that all private landlords are investing in their properties, building on the good work of many to upgrade their homes to Energy Performance Certificate C or higher already.”

The consultation document will be available later today on the Department of Energy Security and Net Zero website.