The secretary of state for levelling up, housing and communities, Michael Gove has hinted at relaxing the timetable for EPC regulations.
During his speech regarding the government construction commitments on Monday (24th July), Gove was quizzed on energy changes by the NRLA, in which he gave his view on the requirements of landlords: “Minimum energy efficiency standards for those in the PRS are likely to be made stricter, but there is a specific timetable at the moment which I believe should be relaxed and more detail will follow shortly.”
The current proposed deadlines are for all existing PRS properties to have a minimum rating of EPC C by 2028, while all new tenancies would need to gain this by 2025, though Gove’s speech has hinted at changes to this time frame.
Emma Cox, MD of real estate at Shawbrook, commented on the potential timetable shift: “The rumoured plans to push back this deadline are reflective of the wider economic challenges facing the rented sector right now, with the government needing to balance the transition to a low carbon economy with protecting socio-economic groups most directly impacted.
“Tenants are facing rising rents and landlords themselves are adapting to a series of tax and regulatory changes over the last few years alongside rising mortgage rates.
“While the proposed timeline could be pushed back, these changes are still coming — acting sooner rather than later can ensure that landlords make the necessary investments to their portfolio and could help to spread that cost over a longer period.
“The lending industry will need to continue to step up with innovative solutions to fund EPC improvements.”
Ben Beadle, CEO at the NRLA, added: "It is over two years since the government completed its consultation on energy efficiency standards in rented homes [and] as a result of the delay in responding to this, there was never any hope of meeting the originally proposed deadlines.
"We want to see properties as energy efficient as possible, but the sector needs certainty about how and when this will happen.
“Ministers need to develop a proper plan that includes a fair financial package to support improvements in the PRS.”
