More changes for private rental sector

Not content with the Renters Rights Bill, the UK government is consulting on changes that will require landlords in England and Wales to meet higher energy performance ratings by 2030.

Currently, 48% of all private rented homes have an Energy Performance Certificate (EPC) of C or above. However, under new plans the government is proposing that by 2030 all privately let properties will need to meet a minimum EPC C. Currently the minimum level required is EPC E.

The government estimates the average cost to landlords to comply with the proposals by 2030 would be between ￡6,100 and ￡6,800.

The consultation is looking for views from landlords and tenants on the proposals, including:

• Whether landlords should be required to meet a fabric standard through installing measures such as loft insulation, cavity wall insulation or double glazing, before moving onto other options including batteries, solar panels and smart meters.
• A maximum cap of ￡15,000 per property for landlords, with support schemes such as the Boiler Upgrade Scheme and Warm Homes: Local Grant.
• An affordability exemption that lowers the cost cap to ￡10,000.
• All landlords being required to meet the new standard by 2030 at the latest.

The consultation closes on 2 May 2025. If you are a landlord and wish to take part, the details can be found here.

This proposed imposition on landlords will in my view, likely impact supply and rents significantly.

• Reduction in Rental Supply – Some landlords, particularly those with older properties requiring costly upgrades, may decide to sell rather than invest in improvements. This could reduce the number of rental properties available, tightening supply.
• Upward Pressure on Rents – With fewer rental properties available, demand would likely outstrip supply, leading to higher rents. Additionally, landlords who do make improvements will likely pass the costs onto tenants through rent increases.
• Shift in Investor Behaviour – Some investors may be deterred from the buy-to-let market, while others might focus on acquiring properties that already meet the EPC requirement to avoid costly retrofits.
• Increased Demand for Energy-Efficient Homes – Tenants may benefit in the long run if rental homes become more energy-efficient, leading to lower utility bills. However, in the short term, affordability could become an issue if rents rise too quickly.

Are you a landlord? Does this additional burden worry you?

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