Private landlords need to bring the Energy Performance Certificate levels of their properties to at least C by 2030, up from E.
The government claimed it would cost landlords between £6,100 and £6,800 to upgrade their properties.
EPC targets are nothing new, as the Conservatives had a target of C by 2025 which was ultimately scrapped as the date got closer.
Rob Wall, assistant director, British Property Federation, said: “We welcome the opportunity to work with government on the scope, detail, and implementation of the minimum energy efficiency standards (MEES) in the domestic sector.
“We fully support the drive to improve energy efficiency across the domestic rented sector, but given we have effectively lost four years, with the target initially suggested in 2020 but not confirmed, it will be challenging for all properties in the private rented sector to achieve EPC C by 2030.
“We would like to have seen recognition of the time lost reflected through a gentler trajectory, to provide the sector with sufficient time and support to carry out necessary work.
“The sector also needs certainty around the targets, essentially looking for confirmation that this will be the end target, rather than further targets being announced, as this can add to uncertainty and investment decisions.”
EPC ratings are graded alphabetically from A to G, using a numerical points system.
For example, a score of between 92-100 SAP points gives a rating of A, 81-91 points gives a rating of B, and 69-80 points gives a rating of C.
Modern homes tend to score well when it comes to EPCs, with almost 83% of homes built post-1990 currently holding a rating of C or above.
Joseph Lane, founder and director of brokerage Mortgage Lane, said: “The cost of upgrading properties to achieve an EPC C rating varies, typically ranging from £4,700 to £9,000, depending on the property’s starting point and the extent of needed enhancements like better insulation or more efficient heating systems.
“Considering the 2030 deadline, landlords should initiate these upgrades soon to manage costs effectively over time.
“From a mortgage perspective, there are now innovative financial products on the market aimed at incentivising landlords to make these upgrades.
“Certain lenders are offering mortgage products with interest rate reductions of up to 0.5% for properties that achieve an EPC rating of A to C. These products not only reduce borrowing costs but also underscore the shift towards more sustainable investment practices in the property sector.”
Jaclyn Mangaroo, chief communications officer of The Property Institute (TPI), said the government needs a tailored approach to EPCs in high rise buildings.
She said: “With over 20% of households in England and Wales living in flats, maisonettes, and apartments, and nearly five million leasehold homes in England—many in older, inefficient tall buildings—decarbonisation efforts must account for the legal and architectural barriers preventing improvements and upgrades.
“Almost 40% of leasehold homes are rented out in the private sector, so without a specific mechanism in place to improve these homes, the supply of rental homes will be significantly impacted if they cannot meet the EPC targets.”
“To truly tackle fuel poverty and meet net zero targets, the Government must develop a tailored strategy and funding mechanisms to support retrofitting and low-carbon heating in high-rise housing.”
Via @PropertyWire