Plans to improve the energy efficiency of private rented housing have no hope of being met following the government’s failure to respond to a consultation which closed two years ago.
That’s the view of the National Residential Landlords Association.
The government proposed a target that all new tenancies in the private rented sector should be in a property with an energy performance rating of at least a ‘C’ by 2025; additionally it proposed that this be extended to cover all tenancies in the sector by 2028.
Yet despite the consultation closing in January 2021 the government has so far failed to provide any response, leading to uncertainty for landlords and others in the sector.
In view of the failure to provide any concrete steps forward the NRLA wants the government to make clear that the dates envisaged in the original consultation are now unrealistic. It’s also calling for a definitive timetable for publication of a response to the consultation and any required legislation thereafter.
The government also proposes that all landlords should be expected to pay up to £10,000 to make the necessary improvements to meet the proposed targets.
The NRLA is calling instead for the amount that landlords should be expected to contribute to be linked to average market rents in any given area. Under the NRLA’s proposals this would mean the amount a landlord would need to pay would taper from £5,000 to £10,000, taking into account different rental values (and by implication, property values) across the country.
Alongside this, the NRLA is calling for a package of fiscal measures to support investment. This should include the development of a new tax allowance for landlords undertaking works towards reaching Net Zero.
NRLA chief executive Ben Beadle says: “We all want to see properties as energy efficient as possible. However, the government’s delay in responding to its consultation on energy standards in the private rented sector means its plans are dead in the water. The lack of clarity is playing a major part in holding back investment in the homes to rent tenants desperately need.
“In the interests of certainty, the government needs to admit what we all know, namely that it has no hope of meeting its proposed energy targets for the rental market.
“The plans as they currently stand, rely on a misguided assumption that landlords have unlimited sums of money. The proposals fail to accept the realities of different property and rental values across the country, and that the private rented sector contains some of the most difficult to retrofit homes.
“Ministers need a smarter approach with a proper financial package if we want to ensure improvements to the rental housing stock.”
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There are so many problems with EPC C by 2025:
1. New algorithm has been introduced for new properties but not yet for existing so any current EPC is likely to be outdated very quickly.
2. The current EPC is based on cost not carbon use so measures the wrong thing.
3. The standard of measurement is inconsistent using to many assumptions.
4. The recommendations are often impractical.
5. The cost of many of the measures is prohibitive.
6. 2025 / 28 is too short a time frame for most LLs to cope with.
7. The jump from E to C to simply too big.
8. If EPC D properties become illegal to rent the crisis in the PRS will be catastrophic for most tenants.
Because of these factors, most LLs will not attempt any upgrades until there is clarity on what, how & when.
Well said Tricia - I have said from the very beginning of this that if the big “ C” comes in then every one of my properties will be sold, they cannot reach that level without major works and money…. NO. I hope the government have more migrant hotels at the ready , for our evicted tenants.
Time to buy shares in Claridges and other 5 star hotels to house evicted tenants?
On second thoughts, if we convert our properties into B&B hostels, perhaps the existing tenants can stay on at inflated rates paid for by the Councils?
Do you agree that you have a certain responsibility to improve the energy efficiency of your business? I'm not saying it will be painless, but it's about planning and investing in your business and its ageing assets.
There is no business to invest in. The planned legislation means that the letting business is not viable.
J T
Our overriding responsibility is to our customers (aka tenants) who have NEVER asked us to spend their rent money on achieving a higher EPC of dubious value and effectiveness and who rely on us to spend their rents prudently and thus avoid unnecessary and unwelcome rent increases.
I think the temporary housing is exempt from most if not all standards. A well known rogue landlord owns lots of hotels and is doing good business. But the Twit Michael Gove plans to crack down on them too!
I heard one anecdote. Council people used to have 'go-to' people for emergency accommodation. Those people have also sold up.
Did I read that correctly, the article says "Ministers need a smarter approach" the next smart thing they do will be the first. Don't expect common sense or logic from Ministers.
There’ll be exceptions/exemptions but you’ll have to pay , dearly
We all have a collective environmental responsibility and cannot bury our heads in the sand. We've known about the government's views and long term aims regarding rental energy efficiency for years and the formal white paper was issued over a year ago, giving us a 5 - 8 year head start. Although the updates to the regulations have not been confirmed, you know it's going to come at some point. If Labour win next they are unlikely to be any softer either.
Perhaps start investing now to improve things for your tenants and the environment, or at least start putting money aside to reduce the regulatory impact later. Also, with current inflation figures, the longer you leave it the more expensive it is likely to become.
Most of our corporate landlords have implemented plans to bring their properties up to a C rating by end of 2024, or ensure it qualifies for one of the likely exemptions. It is going to cost me about £8k to do my own two properties that are both D rated and I budgeted to do so over 3 years.
The government's plan is also to restrict mortgage lending from 2030 on properties that are not C rated or have a valid exemption, so it will apply to sales eventually too.
How do you know that any changes you make now will actually achieve a C rating if the criteria change?
Prudent landlords who care about our tenants are wise to await further clarification of requirements.
JT- nope, the majority of us are small landlords with a few properties and will just sell up, me being one of them, near retirement and cannot be bothered. Let the government try and pick up the mess.
I understand your goals and objectives are going to be entirely different if you're closer to retirement, but of those people looking to the longer term, even smaller landlords, of which I am one, cannot complain that we didn't see this coming and have time to plan for it.
I also hold the view that we have a moral duty to our tenants and the environment to make reasonable improvements.
J T, I had morals once when I was young and wet behind the ears, I've been stabbed in the back so many times that I no longer have morals, society today is dog eats dog, sad I would agree, but that's the way it is, who can we blame for this ? political parties of ALL colours
How true Andrew. I have done the right thing with a property and yet EVERYONE is against me some how. Not appreciative, or trying to make money off me in some way. Or stop me getting my property back altogether.
JT - No. They keep messing us around. The rules are not clear and keep changing on EPCs. Along with all the rental reform and tax changes no I can't plan. I'm not wasting my time and money upgrading when I don't know I will keep it. I want certainty.
I'm doing nothing until I know the full facts, then if I consider it viable I'll spend the money, if my figures don't stack up my properties will go into the auction room, I turn 70 this year so I'm really not bothered one way or the other
I saw this coming a decade ago you only have to listen to the viscous propaganda from the three big hate gangs,I started buying and renting in Europe some years ago and selling properties in the UK it is the best move ever only have 31 left in the UK and they will be gone soon
No discriminatory taxes
No ever changing regulations
No politicians putting us out of business
No hate crime
We are JUST TREATED THE SAME as every other business
This will be hard for any British landlord to grasp but we frequently hear the words "THANK YOU" not just from tenants but also most local authorities the first time I heard this I was too shocked to respond, all we ever get in the UK is hate hate and more hate
Where do you operate in Europe? It’s just so toxic hear now. No one appreciates landlord here sadly. Even the Taxman is unappreciative.
The biggest problem for me is loss of Control that puts EPC’’s and everything else on the back burner.
Ok so I build a House from scratch by my own hand and have done some of those bought the sites & borrow to finance.
My first House was built by me & done this way with only hand tools from start to finish no electric on site. When I got married I had the House ready at carried her over the
threshold that was 49 years ago. She is still with me and now a let House so according to the White Paper. Tenants comes off the Street and move in to my House and have more rights
than me. Tenants can move out at time they like nothing new about that obviously they always did I couldn’t stop them and now it’s supposed to be a concession they are giving us.
Right I will have to justify myself to the Tenants why I want my property did you ever hear anything so stupid.
My Accountant told me today it’s not too bad if you want to sell or want it do a Family member. I soon put him right on that one he won’t be repeating that to another client. It none of their business to dictate to the owner. Suppose I end up with a Tenant I don’t like he can say I am not moving and there’s not a thing you can do about it.
I had exactly all this before S.21 which is why I fought 10 years for S.21 to be introduced from ’78 to ‘88 it’s completely unacceptable otherwise, people are not grasping the reality of this & worrying more about EPC which is irrelevant by comparison.
J t my friend you have a lot to learn with your morals and couples of properties. It wouldn’t be you phoning in LBC Radio last night with almost a carbon copy of this narrative of course not apology Sir.
That Tenant with some family members had a long stay on a reasonable subsidised rent the landlord was very happy with the situation, got plenty of air time with his posh accent spouting out this nonsense, just wait until he get different Tenants of all Nationality paying their own rent it will been very much different. He done us a lot of harm last night wait till he gets Tenants that’s are not subsided paying their way they won’t be hassle free licking his boots.
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