Posted on 19th November 2024
The Labour government has announced its plan for all rented properties to become a C rating or above by 2030. While on paper this sounds like a good idea but in reality what effect will this have on the already squeezed private rented sector? We take a look at the key points below.
What’s in the proposals?
Put simply, for all rented properties to have an EPC rating of C or above by 2030. Initially just aimed at the private sector, the regulations which form part of the government’s ‘Warm Homes Plan’, have now also been widened to include social housing as well. Currently, 70% of social housing already meet the required C rating but the private sector does lag behind with the figure at 45%.
Is there any government help?
A consultation is due to take part later this year to develop the policy. The previous Conservative government (who proposed something similar before eventually scrapping it) planned to introduce grants, as well as spending caps of £10,000 for landlords. At this stage, grants are to be distributed by eligible local authorities with a focus on improving properties with low-income occupants although guidelines are still quite vague. It has been announced what landlords will be able to claim will depend on the post code of their property, having tenants on certain benefits or a low income as well as the property already having ‘inefficient heating’. Announced at £30,000 for their first rented property and £15,000 for work on any additional homes, it’s still unclear how widespread the support will be and how many landlords will actually benefit from it.
For more information of the grants available, you can visit www.energysavinggrants.org and complete the Eligibility Grant checker. Landlords can also contact Energy Saving Grants on 0330 2230333.
What will the impact on the rental market be?
This remains to be seen. If there’s adequate financial support for landlords to make the upgrades then it’s a win-win for tenants living in warmer homes and landlords owning more energy-efficient properties. However, simply asking a landlord to find, for example, £10,000 out of their own pocket to upgrade a single rental property (they may also have a portfolio of other properties to consider too) will not work. One of two things will happen – either rents will increase to help fund the upgrades or properties will be sold. Fewer properties on the rental market will also mean higher rents so ultimately tenants will lose out with either scenario.
While on paper it sounds like a great idea, the consequences of introducing policies such as these needs to be thought through extremely carefully by the government.