Stay informed about the latest EPC Rule Changes. It seems that the private rental sector may face additional months of uncertainty concerning the implementation of new energy efficiency regulations.
According to a recent statement by the National Residential Landlords Association, its chief executive held a meeting with a government minister and learned that a much-awaited announcement regarding the revised deadlines for Energy Performance Certificates (EPCs) would be made “before Christmas”.
During a private discussion with Energy Efficiency Minister Lord Callanan, the association’s representative, Ben Beadle, expressed landlords’ dissatisfaction with the lack of progress following a consultation on proposed minimum EPC ratings that took place over two years ago.
As many landlords are aware, the government has set a target of achieving a minimum energy efficiency rating of C for privately rented homes by 2025 for new tenancies (which is less than 18 months away) and by 2028 for all other tenancies.
Beadle expressed concerns on behalf of landlords regarding the uncertainties and anxieties surrounding the specified timelines. There is apprehension that a cap of £10,000 per property for improvement works could result in substantial expenses for landlords who own properties with significant issues.
Contrary to the portrayal often seen in the media, Beadle emphasized that landlords are not wealthy individuals, with nearly 70 percent being basic rate taxpayers. However, the value of £10,000 varies depending on the location and the landlord’s property portfolio.
“For landlords who own properties in prime locations like central London and charge market rent, £10,000 still represents a substantial sum. However, in regions such as the North East, where property values and rents are considerably lower, it becomes an overwhelming amount.
“We have proposed the implementation of a tapering mechanism for any potential cap, taking into account the variations in property values across different areas. I am pleased to share that the Minister appeared open to this suggestion during our conversation.
“Referring to discussions with Housing Secretary Michael Gove, the Minister confirmed ongoing collaborative efforts across departments to find a viable solution.
“He also provided reassurance that the Government recognizes the impact of delays in making the announcement and acknowledges the need for clarity. He reiterated the commitment to provide updates on the consultation response before the Christmas period.”
The National Residential Landlords Association (NRLA) has been actively advocating for a clear and practical timeline for the implementation of work requirements, along with a graduated cap on costs that takes into consideration property values.
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