Energy Efficiency Targets are Axed!

Landlords can breathe a sigh of relief as plans to introduce energy efficiency targets are axed! 

As many of you are aware, regulation was due to be announced stipulating that all newly rented properties had to achieve an Energy Performance Certificate rating of a C or above from 2025. To achieve this rating landlords would need to make their property more energy efficient in one or multiple ways for example by increasing insulation in the walls and roof, replacing windows for double or triple glazed alternatives or even upgrading their existing boiler. This was naturally a concern for many landlords due to the high financial implications of such moderations, particularly in the case of older homes.

While these plans were made with good intentions (being to increase efficiency and reduce energy bills), the uncertainty for landlords has inevitably resulted in fewer investments and subsequent available rental homes. This has also led to a negative effect on applicants, now fighting for every available listing as well as existing tenants worrying what impact the improvements might have on their rental payments.

Fortunately, following the recent announcement by Prime Minister Rushi Sunak, the government have decided to scrap these plans and instead hope to work with landlords to improve Energy Performance in the longer term (Inside Housing, 2023). Positively, in the same announcement Rushi Sunak confirmed that grants to those wanting to transition from boilers to heat pumps would increase from £5,000 to £7,500 (BBC News, 2023). There have also been talks of reforming the tax system to further support the investment in energy efficient measures.

Overall, this is great news for both landlords and tenants! Happy Friday!

BBC News, 2023. Fewer homes to rent amid energy confusion, say landlords. Available at: https://www.bbc.co.uk/news/business-66872114 [Accessed 21st September 2023]

Inside Housing, 2023. Sunak scarps energy efficiency targets in move dubbed ‘hugely disappointing’ by housing sector. Available at: https://www.insidehousing.co.uk/news/sunak-scraps-energy-efficiency-targets-in-move-dubbed-hugely-disappointing-by-housing-sector-83222 [Accessed 21st September 2023]