The government’s recent eco U-turn has brought relief to landlords, potentially saving them thousands. Prime Minister Rishi Sunak confirmed that landlords will no longer be required to meet improved EPC ratings, and the Boiler Upgrade Grant scheme will offer larger grants of £7,500 to replace gas boilers with low-carbon alternatives. Despite this, the National Residential Landlords Association stresses the need for a comprehensive plan to ensure all properties achieve optimal energy efficiency. The uncertainty surrounding energy efficiency policies has had a detrimental impact on the rental property supply.
Landlords face challenges in making investment decisions due to unclear government direction. While it’s positive that landlords won’t be compelled to invest substantial sums during a cost-of-living crisis, there’s a need for a comprehensive plan to support energy efficiency improvements in the rental market. This plan should encompass financial support and tax system reform to encourage investment in energy-efficient measures.
Revised government plans include:
- Scrapping mandatory upgrades for landlords but encouraging voluntary energy efficiency improvements.
- Increasing the Boiler Upgrade Grant to £7,500 for transitioning from gas boilers to low-carbon alternatives.
- Postponing the ban on oil, LPG, and coal heating in off-gas-grid homes until 2035, easing financial burdens.
- Introducing exemptions for fossil fuel boiler phase-out, aiding those facing challenges with switching to low-carbon options.
- Rejecting intrusive proposals related to car-sharing, dietary choices, flight taxes, and recycling targets.
- Delaying the ban on new petrol and diesel cars until 2035, allowing families to benefit from falling prices in the next decade.
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