Government backs EPC C targets despite landlord cost concerns

The government claim raising EPC standards will help “tenants benefit from lower energy bills” despite warnings of costly upgrades for landlords.

The government has proposed under the Warm Homes Plan that all private rented properties will need to meet EPC C targets by 2030.

However, as previously reported by Property118, industry experts have warned the government must provide more funding to help landlords.

EPC C standards will benefit tenants

In a written question, Labour MP Vicky Foxcroft asked “what the government is doing to help ensure that housing in the private rented sector is maintained to the appropriate standards.”

Housing Minister Matthew Pennycook said the government was taking steps such as extending Awaab’s Law to the private rented sector and introducing the Decent Homes Standard. He added that EPC C targets will benefit tenants.

Mr Pennycook then claimed EPC C targets will benefit tenants.

He said: “Minimum Energy Efficiency Standards (MEES) already apply in the private rented sector, requiring landlords to ensure their properties meet at least an EPC rating of E. Local authorities have powers to enforce these standards. Under the updated PRS MEES framework, this minimum standard will rise to EPC C by 2030.

“This change will help tenants benefit from lower energy bills and warmer, healthier homes that are less prone to damp and mould, contributing to reduced Fuel Poverty.”

As previously reported by Property118, Wandsworth council fined a landlord £5,000 over poor EPC ratings.

Costly upgrades for landlords

However, Mr Pennycook did not mention that upgrading properties to an EPC C rating will be costly for landlords.

Timothy Douglas, head of policy and campaigns at Propertymark, explained the targets will be hard to meet for older properties.

He said: “While the ambition of the Warm Homes Plan to improve energy efficiency and tackle fuel poverty is acknowledged, the proposals as they stand are deeply concerning for landlords and agents across both the residential and commercial sectors.

“In the private rented sector, landlords are being asked to deliver, in many cases, substantial and costly upgrades to reach EPC C by 2030, yet this is being imposed without clear, long-term funding commitments, realistic delivery timescales, or sufficient flexibility for older, complex, and hard-to-treat properties.”

One lender has warned that refurbishing private rented properties to meet EPC C targets could cost nearly £20 billion.