Propertymark urges financial help for landlords to meet EPC targets

Propertymark urges financial help for landlords to meet EPC targets

15:28 PM, 17th October 2022, About 2 years ago 5

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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.

Achieving the Minimum Energy Efficiency Standards

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.

Further shrinkage of supply in the PRS

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.

Package of financial and taxation incentives to support landlords

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:

  • The reintroduction of the Landlords Energy Saving Allowance (LESA), which let landlords claim on their income or corporation tax return against the cost of buying and installing certain energy saving items. Tax relief was for a maximum of £1,500 per property
  • Additional funding at local authority level that is tenure blind that addresses the challenges the PRS has in obtaining grant funding
  • Implement a new streamlined Green Homes Grant that is flexible to the sector’s needs. Propertymark’s experience with the Government’s recent Boiler Upgrade Scheme has shown that the application stage must be straightforward and user-friendly
  • Consider tax incentive measures such as a reduction in VAT for energy efficiency measures or incentives for landlords and home buyers through stamp duty.

National communications campaign for tenants and landlords

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.

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Mick Roberts

12:13 PM, 18th October 2022, About 2 years ago

An EPC B by 2030? Wow it ain't happening. So many retrospective changes, I just shrug my shoulders now & think What can I do till it's in, the tenants can't get any where. Hopefully Govt & Councils will wake up.

BUT B by 2030, wow I just shouted out B, they having a laugh.
Far too much moving the goal posts after we've already let the tenant move in & their home for 20 years at cheap rent. How we getting a ruddy B. I've got a fairly New build 2005, looks New build & it's a ruddy C.

AAAAAhhhhh please help someone make these imbeciles see common sense & come look what's happening on ground level with these tenants. Ask what they want. Ask if they can afford a B.

Luke P

12:45 PM, 18th October 2022, About 2 years ago

The whole industry's waiting to know the minimum EPC band and the deadline of its implementation.

AFAIK, there's two processes in Govt. that may affect EPCs. The first is the ' Improving the energy performance of privately rented homes' consultation that took place between late-2020 and January 2021 (results of which have not been published).

The second is a Private Members Bill ' Minimum Energy Performance of Buildings (No. 2)' that's had its First Reading in Parliament (seemingly in November 2021), that includes the following:

"(a) all new tenancies must have an energy efficiency performance of at least EPC Band C from 31 December 2025; and
(b) all existing tenancies must be at least EPC Band C from 31 December 20 2028 where practical, cost-effective and affordable as defined under section 1(4)."

If the consultation was to affect the Bill, then why are the results not available. Equally, if the consultation was entirely separate to the Bill, why was the Bill allowed even a First Reading whilst very similar consultation was already going through its motions?

Something doesn't make sense.

Can we, perhaps, write-off both of these (that’s not to say new legislation cannot be attempted), being they’re seemingly dead consultation that began in 2020 and just a simple Private Members Bill that has/will seemingly fizzle out??

Mick Roberts

14:27 PM, 18th October 2022, About 2 years ago

Reply to the comment left by Luke P at 18/10/2022 - 12:45
Keep us all posted then Luke please. U seem to know what's happening. Or rather what's not happening with the Govt ha ha.

With u saying doesn't make sense. I reckon someone telling 'em You are gonna' make hundreds of thousands homeless. As my houses are pretty decent, lots 1970 onwards, new boilers etc. & I have many D's & several E's. They honestly think all Landlords are in it for the money & greed & as much rent as possible. Whereas we know, many Landlords have had enough, are only keeping the house for current tenant, & as soon as/IF IF Maybe NEVER when tenant goes, Landlord is selling.

Dylan Morris

14:37 PM, 20th October 2022, About 2 years ago

All my 7 properties are now C rated. There’s no way I can get them to a B. Four of them are purpose built flats (around 12 years old) and no way can they get above C. Can’t install heat pumps, solar panels etc as they’re in blocks of flats where I have no control.
I suppose I’m lucky as my small portfolio is all C already. No way am I spending tens of thousands of pounds on this rubbish….I’ve got no money….they’ll all be sold. Of course none of this affects the Government’s own council properties which are exempt. All part of the WEF agenda.


11:41 AM, 22nd October 2022, About 2 years ago

Reply to the comment left by Luke P at 18/10/2022 - 12:45
Luke, thanks for highlighting the Private Members Bill ' Minimum Energy Performance of Buildings (No. 2).

As you say, the consultation was carried out almost 2 years (and 2 Prime Ministers) ago.

iHowz have been pushing both BEIS and DLUHC since summer 2020 for the publication of the Government's requirements both on MEES and how the new EPC will be set - currently it focusses on cost and assumes gas central heating as best form of space heating. With a change of focus to lower carbon energy and the relative cost of electricity generation falling, it is likely there will be a significant change of emphasis in the heating element.

Hopefully November will bring the political merry-go-round to a stop and we will have ministers in place long enough to get an in-depth understanding of their brief, allowing them to take more meaningful decisions and possibly even deliver some solutions.

iHowz welcome Propertymark's paper, which echoes many of the points we have made in our campaign to get the Government to confirm the new requirements by publishing them. We will be writing to the new Ministers next month to remind them of the need to provide the new MEES/EPC requirements, while ensuring that the targets are realistic with long term funding available to help landlords carry out the works.

Our campaign can be seen here:

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