Landlords will have until 2028 to hit EPC target – claim

Landlords will have five years to reach planned EPC targets for ALL rented homes, and the new cap on costs will be £10,000, a newspaper reveals.

The Telegraph says the government will announce the new deadline after responding to fears that landlords do not have time to meet the proposed 1 April 2025 target.

And they have been warned by various landlord organisations that landlords facing a big bill will decide to sell up and leave the private rented sector (PRS).

Under the government’s original proposal, all new lets from April 2025 would need to meet a minimum EPC rating of C, while all other tenancies would have to comply by 2028.

Proposed new 2028 deadline for EPC compliance

However, the Telegraph reports that failing to meet the proposed new 2028 deadline for EPC compliance will see landlords facing a fine of up to £30,000.

The move could see up to two million landlords having to boost their property’s EPC rating to help the UK reduce its carbon footprint.

In England and Wales, currently, a private rented home must have a minimum energy performance of E before being let.

One of the big issues facing for pushing the deadline back is that around 3,500 rented properties would have to be upgraded every day for the PRS to meet the 2025 deadline.

Now, the government has apparently been working with lenders on its EPC proposals which could see the cap on the maximum spend on each property being set at £10,000.

That amount will be regardless of whether the C rating is achieved or not, the Telegraph reports.

‘Delay would be a welcome acknowledgement of the lost time’

Rodney Townson, of the landlords’ organisation iHowz, told Properyt118: “If this report turns out to be true, the delay would be a welcome acknowledgement of the lost time caused by dither and delay since the consultation on EPCs.

“Implementation remains dependent on the publication of the new EPC SAP – which would define the balance between cost, payback period and carbon emissions – not just a higher MEES.”

He added: “We encourage the government to publish the new EPC and MEES requirements at the earliest possible date, together with a meaningful long term funding package to support their stated ‘fabric first’ insulation and retrofit approach to homes.”

‘More energy efficient and better insulated’

Goodlord’s head of tenancy services, Rik Smith, said: “I’m sure the market will welcome the proposed extended deadline to get properties up to standard, but there’s an enormous amount to do before then.”

He added: “The energy efficiency task force has only just been assembled, so they will need to get up to speed extremely quickly if landlords are to be supported in this transition, and the EPC methodology also needs a significant overhaul to ensure it’s accurate and fit for purpose if it’s to be used as such a fundamental lynchpin in our housing strategy.

“Landlords across the market are already feeling pressure on many fronts, including rising mortgage rates, so we don’t want a lack of required infrastructure or not fit-for-purpose guidelines to lead them into leaving the sector.”

‘Vital to balance long- and short-term considerations’

Tom Goodman, the managing director at Vouch, said: “With all market regulation, it’s vital to balance long- and short-term considerations.

“The last thing the sector needs is another push factor encouraging landlords to sell-up – there is already too tight a squeeze on rental stock.

“What we need now is a balanced and supportive approach from the Government on next steps, so that landlords are incentivised to make these upgrades and can afford them.”

A government spokesman says it has carried out a consultation on energy performance targets and is set to publish its official response ‘in due course’.

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