Government to consult on EPC C rating for the PRS

The UK government is set to finally unveil its long-awaited consultation on new energy efficiency standards for private rented properties.

Plans are expected to include a requirement for all rental homes to achieve an Energy Performance Certificate (EPC) rating of C or equivalent by 2030.

This move follows months of delays since the initial announcement last September and comes amidst growing pressure to improve the energy efficiency of the UK’s housing stock.

Currently, PRS homes must meet a minimum EPC rating of E, while social housing faces no such minimum requirement.

Consult on increasing EPC standards

Energy Minister Miatta Fahnbulleh confirmed the imminent launch of the consultation and in a written answer, said: “Government will consult shortly on increasing minimum energy efficiency standards in the domestic private rented sector.

“The consultation will include proposals for rented homes to achieve Energy Performance Certificate C or equivalent by 2030.

“In this consultation, we will set out proposals on the exemptions regime for properties that cannot meet the proposed increased standard.

“We encourage landlords and other key stakeholders to feed into this consultation when it is published.”

Potential exemptions for landlords

The statement came in response to a written question from Labour MP Simon Opher, who inquired about potential exemptions and alternative pathways for landlords unable to meet the EPC C rating requirement due to structural limitations.

The government launched a consultation in December focusing on changes to the EPC rating system.

This consultation, which closes next month, includes proposals to reduce the validity periods for EPCs and revising the methodology for EPC calculations.

There’s also a plan to extend the existing rules to require all Houses in Multiple Occupation (HMOs) to obtain an EPC certificate.

Upgrading properties to meet an EPC C rating

The prospect of upgrading properties to meet an EPC C rating presents significant challenges for landlords.

One recent analysis by epIMS found a substantial portion of homes currently available for sale fall below this threshold.

Estimates suggest that bringing a rental property up to the new standard in England could cost landlords around £8,000.

Ryan Etchells of Together told the Daily Telegraph that the previous government’s measures had already driven many landlords out of the market.

He added that there is a severe shortage of tradespeople – a crisis the government has failed to address in its reforms.

The consultation is expected to generate considerable debate among landlords, tenant groups and industry stakeholders as they grapple with the potential costs, compliance challenges and the impact on the PRS.