Government to consult on EPC C rating for the PRS

Government to consult on EPC C rating for the PRS

0:06 AM, 21st January 2025, About A week ago 16

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The UK government is set to finally unveil its long-awaited consultation on new energy efficiency standards for private rented properties.

Plans are expected to include a requirement for all rental homes to achieve an Energy Performance Certificate (EPC) rating of C or equivalent by 2030.

This move follows months of delays since the initial announcement last September and comes amidst growing pressure to improve the energy efficiency of the UK’s housing stock.

Currently, PRS homes must meet a minimum EPC rating of E, while social housing faces no such minimum requirement.

Consult on increasing EPC standards

Energy Minister Miatta Fahnbulleh confirmed the imminent launch of the consultation and in a written answer, said: “Government will consult shortly on increasing minimum energy efficiency standards in the domestic private rented sector.

“The consultation will include proposals for rented homes to achieve Energy Performance Certificate C or equivalent by 2030.

“In this consultation, we will set out proposals on the exemptions regime for properties that cannot meet the proposed increased standard.

“We encourage landlords and other key stakeholders to feed into this consultation when it is published.”

Potential exemptions for landlords

The statement came in response to a written question from Labour MP Simon Opher, who inquired about potential exemptions and alternative pathways for landlords unable to meet the EPC C rating requirement due to structural limitations.

The government launched a consultation in December focusing on changes to the EPC rating system.

This consultation, which closes next month, includes proposals to reduce the validity periods for EPCs and revising the methodology for EPC calculations.

There’s also a plan to extend the existing rules to require all Houses in Multiple Occupation (HMOs) to obtain an EPC certificate.

Upgrading properties to meet an EPC C rating

The prospect of upgrading properties to meet an EPC C rating presents significant challenges for landlords.

One recent analysis by epIMS found a substantial portion of homes currently available for sale fall below this threshold.

Estimates suggest that bringing a rental property up to the new standard in England could cost landlords around £8,000.

Ryan Etchells of Together told the Daily Telegraph that the previous government’s measures had already driven many landlords out of the market.

He added that there is a severe shortage of tradespeople – a crisis the government has failed to address in its reforms.

The consultation is expected to generate considerable debate among landlords, tenant groups and industry stakeholders as they grapple with the potential costs, compliance challenges and the impact on the PRS.


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Cider Drinker

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9:33 AM, 21st January 2025, About A week ago

Meanwhile. Trump is going to ‘Drill baby, drill’.

GlanACC

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9:43 AM, 21st January 2025, About A week ago

I agree that HMOs should conform to EPC C if single family properties also have to have EPC C.
The reduction in the validity time for the EPC certificate (currently 10 years) is an interesting point. If it is reduced to (say) 5 years and the EPC conditions are updated during the 5 years (which is likely), it could mean having to do upgrades to meet new EPC conditions every 5 years.

Ian Narbeth

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11:21 AM, 21st January 2025, About A week ago

Reply to the comment left by GlanACC at 21/01/2025 - 09:43If the landlord is paying the bills then why should a house that has a D or E rating have to upgrade to a C?
It may be impractical to carry out work without getting vacant possession. Where tenants of an HMO are on individual contracts, this means serving 4, 5, 6 or more s21 notices and hoping to get everyone out within a reasonable time. Once s21 is abolished how are we supposed to get vp?

"Estimates suggest that bringing a rental property up to the new standard in England could cost landlords around £8,000." Lies, damned lies and statistics. Some houses may cost £500 to upgrade, some £50,000, A mean average (divide the estimated total cost - plucking a figure out of the air - by the number of properties below C) is meaningless.
The key metric is how many will cost significantly above £8000 and how many of those will be taken off the market?

GlanACC

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11:30 AM, 21st January 2025, About A week ago

Reply to the comment left by Ian Narbeth at 21/01/2025 - 11:21
I hear what you say (that would be the governments reply), and I do understand your predicament but you are still in the rental business (as am I) but I could use the same reasoning to exclude my properties from upgrades - it's just as awkward for me to upgrade

Sam B

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12:24 PM, 21st January 2025, About A week ago

Reply to the comment left by Ian Narbeth at 21/01/2025 - 11:21
I think another significant thing is - them revising the epc calculations. Ie how many that are C or close or heaven forbid nowhere near will drop even lower than now. Moreover with the decent homes standard that may (or may not) mean landlords have even less for the upgrades. Some would say that would not happen but heck I know of one epc that is just one point away from C but would require solar panels. But come 2030 if those panels are not done it would be seen as a poor home not fit to be rented apparently. So who is to say the decent home standard will require say a new kitchen every 5 years for eg.
Meanwhile something like 3/4 of Birmingham council houses do not mean the current one.

Cider Drinker

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12:28 PM, 21st January 2025, About A week ago

Reply to the comment left by Ian Narbeth at 21/01/2025 - 11:21
ALL properties should be uplifted at the same time.

It’s not about saving the tenants a few quid on their energy bills, regardless of the cost to the landlord (and the tenant in higher rents). It’s all about the U.K. having enough energy to meet the needs of millions migrants in their new homes.

David100

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13:17 PM, 21st January 2025, About A week ago

What even is the objective of going to C rating?
Is it to reduce Co2 emissions, or is it to save tenants money on energy bills, because those are two completely different things.
For example, going to electricity based heating will (arguably) reduce Co2 emissions, but will drastically increase the tenants energy costs compared to gas.

Nick M

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14:24 PM, 21st January 2025, About A week ago

Why aren't social housing rentals included? If there is such a benefit to tenants, surely the most vulnerable tenants must be included?

Of course, it's all about money. But we should campaign for social housing tenants to be protected too. Very hard to argue against that.

Andy Coleman

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14:34 PM, 21st January 2025, About A week ago

Epc are not fit for purpose, as every thing is assumed, until this is corrected no point in suggesting anything

Peter G

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18:59 PM, 21st January 2025, About A week ago

There is no justification for double standards. If PRS properties must be EPC C then so must social housing. And if social housing can't afford to do better than EPC D or E then that level should be ok for the PRS too.

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