PRS landlords face EPC deadline - or risk having the home banned

Steve Lumley·27 September 2024·5 min read
PRS landlords face EPC deadline - or risk having the home banned

Landlords in the private rented sector (PRS) must upgrade their properties to meet a minimum Energy Performance Certificate (EPC) rating of C by 2030 - or face being banned from renting those homes out. 

That's the promise made by Ed Miliband at the Labour Party conference - when Angela Rayner also confirmed a Decent Homes Standard for the PRS would be brought in. 

On the day of his speech, The Times reported that the secretary of state for energy security and net zero was willing to 'battle' landlords over the EPC measures. 

There's a promised consultation to see if social housing homes will need to meet the same criteria as PRS properties. 

That consultation will also decide what the cap on landlord upgrading costs will be - under the Conservatives, it was going to be £10,000. 

Labour is expected to retain that figure. 

Poorest live in cold, draughty homes 

Mr Miliband told conference delegates: "We all know that the poorest people in our country often live in cold, draughty homes. 

"Many rent from private landlords, below decent standards." 

He said this was a 'Tory legacy', and a ‘Tory scandal' and the 'Labour government will not tolerate it'.  

Mr Miliband promised to end the 'injustice' and said he would bring in: "Decent standards for private rented homes. Warmer homes, lower bills." 

Rented properties become energy efficient 

Chris Norris, the policy director for the National Residential Landlords Association (NRLA), said: "The NRLA wants to see all rented properties become as energy efficient as possible.  

"However, the Government's approach must involve a clear and comprehensive plan which recognises that the sector has some of the oldest, and hardest to improve, properties in the UK's housing stock.” 

He adds: "Alongside this, as the Committee on Fuel Poverty has warned, is the need for a financial package to support investment in energy efficiency measures.  

"At present, the private rented sector is the only housing tenure without a bespoke package to support work to upgrade homes." 

'Requirements must be realistic and achievable' 

Propertymark's head of policy and campaigns, Timothy Douglas, said: "Property agents want to see more energy-efficient homes, but new rules and requirements must be realistic and achievable.  

"Furthermore, without providing landlords with incentives and access to sustained funding, it is unlikely that energy efficiency targets for the private rented sector and a reduction in emissions across the property sector will be met." 

He added: "The consultation process must shine a light on the different types of property across the rented sector to ensure the targets, guidance and funding prioritise the most difficult to decarbonise." 

Energy efficiency standards in rented homes 

The chief executive of Generation Rent, Ben Twomey, said: "The commitment to raise minimum energy efficiency standards in privately rented homes to EPC Band C is welcome, but must happen as soon as possible.  

"This is a no-brainer to lift tenants out of poverty, improve our health, and address climate change all at once.  

"One in four private renters live in fuel poverty, and we cannot face another six winters in cold homes." 

He added: "Any consultation must keep tenant concerns at the centre of this change, and home improvements should be paid for in grants that already exist for households at risk of fuel poverty." 

Decent Homes Standard for the PRS 

Conference delegates also heard from the deputy Prime Minister, Angela Rayner, that the Renters' Rights Bill will bring in a Decent Homes Standard for the PRS. 

The Bill will also end Section 21 'no-fault' evictions and establish Awaab's Law that will give landlords a deadline to deal with damp and mould in a rented home. 

Ms Rayner said: "Our renters’ bill will rebalance the relationship between tenant and landlord and end no-fault evictions – for good. 

"We will consult and implement a new Decent Homes Standard for social and privately rented homes, to end the scandal of homes being unfit to live in." 

That promised consultation has now been officially announced and will start later this year. 

Landlords will be under pressure 

Simon Thompson, the managing director of Accommodation for Students, said: "Landlords in the PRS will be under pressure to improve energy efficiency in their properties, or risk having that property banned. 

"Ed Miliband's promise at the Labour Party conference mandates a minimum EPC rating of C by 2030, which is what was proposed in the manifesto." 

He added: "But what landlords will be needing is financial help to make those improvements because many will look at what is needed and decide it's easier and cheaper to sell. 

"That means tenants will lose out so we need to know what the spending cap will be and whether the government will offer financial help in grants or tax initiatives."