Propertymark, the leading trade body for property agents, is urging the UK Government to provide financial support and incentives to help landlords meet the new Minimum Energy Efficiency Standards (MEES) by 2030. The organisation argues that landlords should have access to grants, interest-free loans, and tax incentives to comply with the government’s decarbonisation targets.
Landlords facing stricter energy standards by 2030
Currently, landlords in England and Wales are required to ensure that their rental properties meet a minimum Energy Performance Certificate (EPC) rating of E, subject to certain exemptions. However, according to Ed Miliband, Secretary of State for Energy Security and Net Zero, this standard will rise to an EPC C by 2030. This confirmation follows a formal request by Propertymark seeking clarity on future energy efficiency requirements for landlords.
Propertymark has long campaigned for clear guidance on energy efficiency and decarbonisation, emphasising the need for more support for private landlords. “Clarity from the UK Government on new energy efficiency targets is vitally important, and there must be sufficient financial and practical support to help landlords meet the legislation and contribute towards Net Zero targets 2050,” said Tim Thomas, Policy and Campaigns Officer at Propertymark. He added, “Without this support, and an understanding of the diverse nature of property, targets are unlikely to be achieved.”
Government exploring support measures for landlords
While landlords wait for the finalised MEES regulations, Mr Miliband confirmed that the government is still considering the best ways to support the private rental sector. Various schemes, such as the Boiler Upgrade Scheme and the Great British Insulation Scheme, are already in place to assist homeowners with energy efficiency improvements. These schemes provide funding through installers, energy companies, and other providers, helping to make properties more energy-efficient.
Mr Miliband also highlighted the Warm Homes Plan, which is being considered as part of the government’s strategy to improve energy efficiency in owner-occupied homes. This plan would offer grants and low-interest loans to encourage investment in insulation and other energy-saving home improvements. Banks and building societies are expected to collaborate with the government to provide additional private finance to accelerate upgrades and the installation of low-carbon heating systems.
Propertymark seeks tailored energy efficiency approach
Propertymark continues to push for a more nuanced approach to energy efficiency standards, advocating against a “one-size-fits-all” policy. The organisation is calling for energy efficiency proposals that consider the unique characteristics and varied archetypes of private rental and owner-occupied properties. Propertymark also aims to provide landlords with advice and grant opportunities to support the decarbonisation of both domestic and non-domestic properties.
Another key issue raised by Propertymark is the need for clarity on exemptions and cost caps under the new MEES regulations. “As the clock continues to tick down to 2030, the sector also requires urgent clarity on exemptions, including the level of a cost-cap exemption, and if the UK Government intends to introduce interim milestone targets,” explained Tim Thomas.
To address these concerns, Propertymark is actively engaging with the Department for Energy Security and Net Zero (DESNZ) and has met with civil servants to discuss the potential digitalisation of the exemptions register. This development could streamline processes for landlords, offering them a more efficient way to manage compliance with the evolving energy efficiency requirements.
Wales considering pilot scheme to support decarbonisation
In addition to its efforts in England, Propertymark has also been working with the Development Bank of Wales on a potential pilot scheme to support decarbonisation in the owner-occupied sector. This pilot could offer free assessments and lead to grants and interest-free loans for homeowners to improve the energy efficiency of their properties.
The Welsh Government is considering this initiative as part of its broader plan to support the country’s transition towards cleaner, more sustainable energy use. This move aligns with the MEES standards, which apply to private rented properties in both England and Wales.
Urgent need for landlord support to achieve Net Zero
As the UK approaches its 2030 energy efficiency target, it is clear that landlords will need significant financial support to comply with the stricter regulations. Propertymark is advocating for a comprehensive package of grants, loans, and tax breaks to help landlords meet their obligations while ensuring the UK stays on track to reach its Net Zero goals by 2050.
The government’s ongoing review of the MEES regulations and the support measures being considered, such as the Warm Homes Plan, offer a glimpse of potential solutions. However, the sector will need clear, detailed guidance and a fair approach to exemptions to ensure that the new standards are both achievable and sustainable for landlords across the country.
