My Property Box’s Managing Director, Ben Quaintrell, is urging Secretary of State Michael Gove to introduce a fair and practical reform of the energy efficiency rating for privately rented homes. Quaintrell has expressed concern that the current Energy Performance Certificate (EPC) requirements, paired with government mandates for higher ratings, could severely impact the rental sector.
The government aims to reach net zero by requiring landlords to upgrade an estimated 2.4 million privately rented homes’ EPC bands from E to C by 2028. Critics argue this policy is overly punitive, as landlords may face massive expenses, fines up to £30,000, and rental bans if they do not comply. Reports indicate the government may raise the minimum spending cap for energy-efficient measures from £3,500 to £10,000.
Quaintrell warns that additional costs and red tape could force more landlords out of the rental sector, exacerbating already rising rents due to high demand and limited supply. He suggests that the government should not solely rely on landlords to improve energy efficiency, especially given past failed initiatives like the Green Homes Grant.
Quaintrell points out that most UK homes were built before 1919, and the costs to upgrade their EPCs are significantly higher than for newer properties. He cites instances of developers abandoning older property renovations due to prohibitive costs. He urges Gove to consider a reform that accounts for the age, construction methods, rental value, and retrofitting costs of properties.
Without a fair and feasible approach, Quaintrell predicts a mass exodus of investors from the rental sector, leading to a severe housing shortage amid ongoing shortfalls in new housing construction. He calls for a government-led investment strategy to improve energy efficiency over a more reasonable timeframe, without jeopardizing the crucial role of landlords in the rental market.
