15:28 PM, 17th October 2022, About A year ago 5
Landlords will need financial and tax incentives for the government to reach its Net Zero ambitions and plans for EPC standards in the private rental sector (PRS), Propertymark says.
The organisation has made a written submission to the Department for Business, Energy and Industrial Strategy (BEIS) which has called for evidence into the Net Zero review.
The review outlines the Government’s ambitious plans to be Net Zero by 2050 and an independent review of the government’s approach will help ensure they are delivering in a way that is pro-business and pro-growth.
Propertymark says it is supportive of the Government’s Net Zero aim, but their evidence highlights the impact government policy will have on landlords and the sales and letting sector.
They point out that not having realistic timeframes and a package of financial support, any targets within the private rented sector are unlikely to be met.
BEIS’s vision for the decarbonisation of England and Wales’s PRS stock is by achieving the Minimum Energy Efficiency Standards.
The department is considering further moves by making it mandatory that all PRS properties will have an Environmental Performance Certificate (EPC) of at least a B by 2030.
The new and revised cost cap of up to £10,000 will be challenging for all types of landlords, especially those with small portfolios and those landlords with properties with low house price values.
Propertymark also warns that the devastating impact of the pandemic, confusion over the absence of a long-term strategy and the lack of financial support, is likely to lead to further shrinkage of supply in the PRS.
This is going to be hardest felt in parts of England and Wales with the lowest house-price values and subsequently where economic growth is sluggish.
They say the Government must get realistic to the challenges in decarbonising the PRS which has some of the oldest housing stock, most off-grid properties and high numbers of vulnerable tenants.
Landlords need to be supported in improving stock gradually – or there will be a continuation of landlords exiting the market.
Propertymark is now calling for a package of financial and taxation incentives to support landlords get their properties up to scratch, while continuing to provide housing options for many. These include:
Propertymark also called on the UK Government to embark on a national communications campaign for tenants, landlords and owner-occupiers.
They add that a central part of enabling a retrofit revolution on the path to Net Zero will need to adequately convey the wider benefits to homeowners and landlords.