Following the 2025 consultation into amending the Energy Efficiency Regulations in the private rented sector, the Government has published conclusions. The report – ‘Improving the energy performance of privately rented homes’ – sets out key points that are going to be taken forward.
Whilst we still await the outcome of the consultation on introducing the Decent Homes Standard to the private rented sector the proposals regarding increasing the energy performance of homes in the private rented sector will go a way towards doing so.
A summary of the changes that are proposed are:
- All rented properties are to meet an EPC requirement of a C or greater by 1 October 2030.
- There will be a new dual metric for EPC assessment.
- Properties graded at C or above before 1 October 2029 will be considered to be compliant with the new metric but will be assessed under the new metric when it is time to renew their EPC.
- EPC certificates remain on a 10-year renewal cycle.
- For properties not meeting and being award an EPC certificate of C or above before 1 October 2029 they will be assessed under the new metric after that date and will need to meet at least a C under the revised testing.
- To improve a property a Landlord is expected to spend up to £10,000 over a 10-year period.
The current list of exemptions is to be expanded to include exemptions around:
- Having carried out improvements to the value of £10,000 or more in a 10-year period.
- Where the cheapest improvement on an EPC would exceed the £10,000 cost cap.
- New landlord (only lasts for 6 months).
- 3rd party consent not being granted.
- Negative impacts exemption.
The report also refers to the PRS Database which is set out in the Renters Rights Act. The EPC rating will be part of the information that a Landlord will be required to register.
There is some support for Landlords’ in implementing the improvements and the Governments’ Warm Homes Plan sets out further possible funds. Not all of these schemes will count towards the £10,000 that a Landlord is expected to spend to make improvements to their properties and there is no current reference to extending the zero rate on VAT for some energy saving measures past March 2027.
Whilst the conclusions of the Report need to be put into law the timeframes for doing so is to have the relevant law in force in 2027 with a compliance date for affected Landlords by 1 October 2030.
If this is something that might be of interest to you and you need advice then please get in touch with our Property Litigation team.