31st
Mar 2023
The industry is hoping that the private rental sector’s deadlines for properties to meet the new Minimum Energy Efficiency Standards (MEES) for tenancies will be extended.
The energy and housing divisions of the government’s original plans include the deadline for all PRS properties to meet the minimum EPC C rating and scrapping the current E rating.
The first tranche is set for April 2025 for all new tenancies or renewal of tenancies and then for all BTL properties by April 2028.
Many within the sector are hoping and speculating that since 2021 there have been no official statements on the practicality of the ‘intended’ deadlines, and this could mean a change whereby all BTL properties will have until 2028 to meet the minimum C rating.
The Daily Telegraph has recently claimed that the extension is very much a done deal in the government, however it has yet to be announced; some believe that the Energy Security Day may play ‘host’ to a formal announcement.
However ministers are currently considering a scheme to fine landlords up to £30,000 if their properties do not meet the minimum required C rating by an extended deadline of 2028.
Ben Quaintrell, of an estate agency operating throughout North East England and North Yorkshire, said: “Improving the energy efficiency of UK homes is important, but this requires many thousands of pounds worth of investment within a very short timeframe.
“Achieving net zero energy efficiency targets in modern homes is relatively straight forward but the majority of our housing stock is pre-1960s and require huge investment.
One such example is that many terraced houses built pre 1960s had walls just one brick deep and others do not have the required gaps for cavity wall insulation.
Ben added: “The onus must not be on private landlords to carry the can, rather there needs to be a UK wide government investment plan that acts as a workable incentive - unlike its flagship Green Homes Grant that was scrapped after just six months in 2021.”
Rik Smith, head of tenancy services at an online lettings platform, comments: "It's absolutely right to take steps towards ensuring all national housing stock is more energy efficient and better insulated. It's not only the right thing for the planet but will also help lower bills for tenants and landlords in the long term.
“I’m sure the market will welcome the proposed extended deadline to get properties up to standard, but there's an enormous amount to do before then. The energy efficiency task force has only just been assembled, so they will need to get up to speed extremely quickly if landlords are to be supported in this transition, and the EPC methodology also needs a significant overhaul to ensure its accurate and fit for purpose if it's to be used as such a fundamental lynchpin in our housing strategy.
“Landlords across the market are already feeling pressure on many fronts, including rising mortgage rates, so we don't want a lack of required infrastructure or not fit-for-purpose guidelines to lead them into leaving the sector."
The majority of landlords and lettings agents will most certainly breathe a huge sigh of relief if this comes to pass, however there is one supplier who will probably be dismayed.
Elmhurst Energy, an energy assessors accreditation scheme, calls for EPC ratings to be carried out every three years at most and assessors must be central to a range of activities to help achieve the Net Zero Target.
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