Landlords Forced to Upgrade Energy Performance in Properties

Action taken on landlords with call to boost energy efficiency

The UK wastes £7.5 billion on heat that escapes through windows, doors, floors and other seals. In an attempt to combat this at the most challenged end of the market, the government has called time on landlords with the draughtiest properties in England and Wales, forcing them to upgrade energy efficiency.

The government has stated that “during 2019, properties with an Energy Performance Certificate (EPC) rating of F or G, the lowest two energy efficiency ratings available, must be made warmer by landlords before they can be put on the rental market for new tenancies. This is expected to cost £1200 on average and will affect 290,000 properties, which represents around 6% of the overall domestic market.”

Most landlords will be unaffected by the regulation as their properties are already compliant.

The call comes as excess cold is the largest preventable cause of death in the private rented sector. The World Health Organisation has estimated that 30% of avoidable winter deaths are due to people living in cold homes.

“While the vast majority of landlords take great pride in the properties they own, a minority still rent out housing that is difficult to keep warm,” explained Energy and Clean Growth Minister, Claire Perry.

“Upgrading these homes so they are more energy efficient is one of the most effective ways to tackle fuel poverty and help bring down bills for their tenants, saving them £180 a year.

“Everyone should be protected against the cold in their own home and today’s announcement will bring this reality closer.”

Landlords facing costs exceeding £3500 for putting in new insulation in homes have been told they're able to register for exemption from the regulation, but the estimated cost of upgrading any property from an F or G to an E band is expected to be around £1200 – far below the upper ceiling in place. In order for a landlord to register for exemption, they must provide three installer quotes.

Previously, the cap was set at £2500, meaning that many homes across the nation would be left cold and uncomfortable for tenants. This amended regulation means that around hundreds of thousands of landlords need to make changes that will protect tenants from the cold, physically and financially.

A spokesperson for environmental campaign group 10:10 Climate action said: “We had campaigned for a £5000 cap, so this isn’t all that we wanted. This new cap still leaves thousands of tenants in the cold, and there’s still a long way to go on energy efficiency for the rest of our building stock. But it’s a good - and long overdue - first step.”

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