Landlords need clarity and more time for EPC deadline

Landlords need clarity and more time for EPC deadline

9:54 AM, 4th March 2025, About 3 months ago 9

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The Energy Minister Miatta Fahnbulleh has been pressed for greater transparency and extended timelines to meet the government’s ambitious energy efficiency targets for the PRS.

The call was made by the National Residential Landlords Association (NRLA) in the first of four planned discussions.

The meetings are bringing together industry voices to scrutinise proposals demanding rented properties achieve a minimum Energy Performance Certificate (EPC) rating of C by 2030.

Landlords are facing upgrading costs of up to £15,000 per home to meet the requirement.

Opportunity to engage with the minister

Chris Norris, the NRLA’s policy director, said: “This was a positive opportunity for us to engage directly with the minister, who, for her part was keen to encourage an open dialogue, not least on what the timetable for change could and should like.

“Deadlines are only effective if they are reasonably achievable and, with around 2.5 million rental homes currently graded as D-G on their EPC it is clear that what is currently on the table at present is not.

“Even if the improvements were fully funded and upgrades started tomorrow, we still don’t have the tradespeople to carry out the work.”

He added: “Pulling thousands, if not tens of thousands of homes from the rental market if they failed to hit the 2030 deadline would have a devastating impact on supply and affordability for tenants – the very people this legislation wants to support, so it is clear more work is needed on these timelines.”

2030 deadline is ‘unreasonable’

Industry delegates, including the NRLA, flagged the 2030 deadline as ‘unreasonable’ and impractical, despite the minister’s assurance of swift action to create ‘warmer and cheaper-to-run homes’.

Concerns also surfaced over vague funding plans and the methodology behind EPC assessments, especially as a consultation on EPC calculations just concluded, with another on the Home Energy Model looming later this year.

There’s also a critical shortfall of skilled workers which is currently 166,000 but this is projected to hit 250,000 by 2030.

The lack of workers casts further doubts on the feasibility of the upgrades, the delegates said.

The NRLA is demanding a robust government commitment to training to address this worker gap.

Regulation enforcement issues

Questions also arose about enforcement of the new regulations.

Delegates wanted to know who will oversee compliance, and how will it be funded.

To ease the burden on landlords facing hefty upgrading costs, the NRLA is proposing tax incentives as the work could classified as allowable expenses.

On this point, the minister pledged to raise the issue with the Treasury.


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Reluctant Landlord

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7:51 AM, 4th March 2025, About 3 months ago

‘warmer and cheaper-to-run homes’.

The blinding obvious fact remains. Tenants are not putting the heating on due to high energy costs. This makes no real quantifiable or qualifiable difference if they are in an EPC D or C rated property.

The cheapest option of all, is to just to not turn the heating on at all. Do they not see that it is the tenant who ultimately dictates how much they spend (or not) on energy?

What exactly is the real difference between a C or D or even E rated property if the room temps inside are all 15 degrees? They are all cold and for the tenant the costs of energy is the same. Zero because its not turned on.

To counter this the government have come up with a plan for thousands to be spent on getting every property to a C, just for the same tenant to not put the heating on, but increase the potential for more condensation/damp and mould because the property is better insulated.

More rent to be charged to displace the costs of upgrade to make it 'warmer' for the tenant.

Mental.

Cider Drinker

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10:08 AM, 4th March 2025, About 3 months ago

I’d need to spend over £10,000 to make one property meet an EPC Rating C.
The investment would potentially save the tenant £250 per year.
(Figures from the EPC - Steps you could take to save energy)
I’d need to increase the rent by at least £75 per month to recover my investment. That’s £900 per year.
So, the tenant is £650 per year worse off but at least we would have sufficient capacity in the National Grid to power Labour’s homes for migrants.
Meanwhile, the warmongers continue to prolong an unwinnable war. Destroying buildings, destroying lives, wasting money. EPCs are not about the environment. We’ve given up on that.

ellis freeman

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10:49 AM, 4th March 2025, About 3 months ago

If you go on, change.org I believe you can find the information about the petition to get the government to include social housing in the EPC ratings and not just the prs, this might be of interest

Beaver

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10:54 AM, 4th March 2025, About 3 months ago

Reply to the comment left by ellis freeman at 04/03/2025 - 10:49
Do you have a link for this?

A Reader

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12:18 PM, 4th March 2025, About 3 months ago

I had always thought if the govt are so passionate about EPC and EPC C being the minimum for properties why is it just PRS - why not all rented homes i.e. social housing? If the govt feel so strongly about EPC social housing must be included and in the same deadlines or they will be seen as hypocritical. Petition link here: https://www.change.org/p/expand-ed-miliband-s-renters-rights-bill-to-include-council-and-social-accommodation?source_location=search

Desert Rat

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16:40 PM, 4th March 2025, About 3 months ago

Once the EPC C comes in I may have to spend 15k per property that doesn't make a C, but it will be in capital gains tax and not improving the EPC, I've already done as much as I'm willing to do to my houses.

Either way, I loose and the government win and get the money.

Beaver

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17:23 PM, 4th March 2025, About 3 months ago

Reply to the comment left by A Reader at 04/03/2025 - 12:18
I see the link but I can't sign this: My view is that IF PRS landlords are obliged to meet EPC band C then social housing landlords should be obliged to meet it as well.

However, I do not see that it helps the market to stop tenants renting band D, E, or F properties whether in the PRS or social housing sector because it drives out competition in a market where there is under-supply.

I think that if the government really wants improvement then it should allow all landlords to incorporate with the benefit of rollover relief and introduce capital allowances enabling landlords to invest for the longer term in more energy efficient properties and a more diverse energy sector.

northern landlord

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17:26 PM, 4th March 2025, About 3 months ago

Reply to the comment left by Cider Drinker at 04/03/2025 - 10:08
If you just have £10,000 of your own money when you lend it to your PRS business you need to charge interest at say 5% to better what you could have made putting it in a savings account. To get your money back in a normal seven-year cycle you would need to charge an extra £136 a month. Stretch it over 10 years and it would be £101 a month. Which tenant given the choice would opt for that? Maybe tenants will be able to veto the “improvements”?
Plus, you have to factor in that the money unlike in a normal savings account is essentially gone, locked away until you sell the property

Desert Rat

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17:34 PM, 4th March 2025, About 3 months ago

Reply to the comment left by A Reader at 04/03/2025 - 12:18
I looked at signing the petition but decided not to. But agree that both the PRS and Social housing should be treated equally, Neither of us should be forced to get an EPC C, which is above the average for the UK which is currently a D.

Social housing is probably in a worse state than most of the PRS.

I've already done all of the sensible upgrades to my houses and refuse to fit a heat pump. It would probably be stolen within a week.

I've jumped through hoops for the last 10 years to try to stay legal
Between the RRB and EPC C I've just about had enough and the government can stick it where the sun doesn't shine and I'll sell all of the houses and tell the tenants why they are now homeless and sit on a beach where the sun does shine and enjoy my retirement.

Excess money will go into government bonds outside of the UK. My current ones are doing really well and they are so easy to maintain.

Sad but really think that it's just not worth investing in the UK these days

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