Upgrading energy efficiency under the Renters’ Rights Act poses new challenges

A landlord association has warned the Renters’ Rights Act could hamper energy efficiency improvement plans.

In a post on its website, the National Residential Landlords Association (NRLA) said that previously landlords could wait for a tenancy to end or use Section 21 to create a void period in which to carry out improvement works.

However, under the Renters’ Rights Act, Section 21 has been abolished, and with the government’s announcement that all private rented properties must meet EPC C targets by 2030, the NRLA has raised concerns about how landlords will retrofit homes when tenants have no obligation to leave during works.

Criteria is restrictive

The NRLA says the only realistic route for gaining possession to carry out retrofit works is Ground 6, which applies when a landlord plans to demolish or significantly redevelop a property and the work cannot be done with the tenant still living there.

However, the criteria are very restrictive. The threshold for what counts as substantial is high and typically involves major structural or transformative work that would make the property uninhabitable.

According to the NRLA, most energy efficiency upgrades, even those that are expensive, are unlikely to meet this requirement.

There are also further conditions, as the landlord must have owned the property before the tenancy started and the tenancy must have been in place for at least six months.

Only a temporary solution

The NRLA explains that where tenant cooperation is needed, landlords can register a third-party consent exemption under MEES. This can offer protection from enforcement, provided landlords can show they have made genuine attempts to obtain consent.

However, this is only a temporary solution. The exemption lasts for five years or until the tenancy ends, whichever comes first, and does not remove the requirement to meet EPC C but simply delays it.

The NRLA adds that once the tenant leaves, the exemption no longer applies and landlords will need to carry out the necessary improvements.