Student landlords in England and Wales are among those who should be offered grants or interest-free loans that are backed by the government to help pay for the costs of upgrading their Energy Performance Certificate (EPC) rating to a minimum of ‘C’.
That’s the call from industry association Propertymark who have told the Welsh Senedd, who are looking into ways of decarbonising the private rented sector, that financial help will be needed.
However, landlords in England and Wales still don’t know what the changes to the Minimum Energy Efficiency Standards (MEES) regulations will be and it’s these that will bring in tough new EPC rules.
Landlords also don’t know when the new EPC rating will take effect or how the cost of improvements will be funded.
All new tenancies will need an EPC rating of C
The government has consulted on a proposal that all new tenancies will need an EPC rating of C from 1 April 2025. This will then be extended from 1 April 2028 to cover all tenancies.
But no final decision has been made of when a minimum rating of C will need to be implemented and, controversially, the Welsh government is looking at a cost cap of £10,000 for landlords to carry out the work.
Properties in Wales tend to have the lowest values in the UK and also have the lowest energy efficiency ratings.
In a bid to help landlords, Propertymark says that Wales and other UK areas should offer interest-free loans or grants to pay for a retrofit and help them decarbonise their properties.
The organisation also says that landlords who buy a property that needs significant work should be paying a lower rate of stamp duty.
‘Availability of interest-free grants for a landlord’
The organisation’s head of policy and campaigns, Timothy Douglas, said: “We are pleased to see our proposals, including the availability of interest-free grants for a landlord, milestones for the sector and a request for an agreed timetable have been recommended to the Welsh government.
“We urge the Welsh government to act on these recommendations and to work with the UK government to introduce policies that allow homeowners and landlords to decarbonise their properties.”
In recent research, Propertymark highlights that 40% of properties in Wales and England would not currently be upgraded to an EPC rating of C without financial help.
‘A minimum EPC rating of C for rental properties is a huge worry’
Simon Thompson, the managing director of Accommodation for Students, said: “The issue of having a minimum EPC rating of C for rental properties is a huge worry for the private rented sector and it’s one that landlords cannot and should not ignore.
“Student landlords need to be aware that the government has not yet committed to a date for EPC minimum requirements, but this is something that they will need to consider because the work will need doing at some point and it may be a costly undertaking. Financial help will be crucial for landlords, and it is something that should be considered carefully by the government.”
Care leavers struggle to find guarantors for student accommodation
The Independent has revealed that students who have left care face having to pay a year’s rent upfront because they do not have a family member to be a guarantor.
Instead, the paper says that lecturers are stepping in to help desperate students.
This lack of support has seen some students quit their courses, and many are struggling to secure accommodation.
They also risk homelessness and universities are now being urged to help with rent guarantor services for students who are either estranged from their parents, or who have left care.
The article also highlights that despite a pledge in February by the government to increase the number of care leavers who enter higher education, just 36% of universities mention a guarantor service for rent, the charity Unite Foundation reveals.
That organisation now wants the government to back its campaign that will see universities offering more help to around 16,000 estranged students and care leavers in the UK.
They say that it’s a low risk undertaking for universities that will help to ‘level an uneven playing field’.
Now, the charity is urging the Office for Students to mandate universities to offer guarantor services and if they don’t, to explain why.
Students to receive a second cost of living payment
Manchester University has revealed that a second cost of living payment worth £230 for full-time students, and £115 for part-time students is to be paid. The students must be eligible to receive the money which is part of a £9 million fund to help deliver financial support for students. Around 10,000 students will benefit from the scheme.
