Housing Secretary Michael Gove has urged the government to ease the pace of changes to Energy Performance Certificate (EPC) targets for the private rented sector.
The proposed regulations require landlords to obtain a C grade for their properties by 2028, necessitating costly upgrades such as heat pumps, insulation, or solar panels. Citing financial pressures on landlords, Gove has expressed his concerns about the viability of implementing the changes as planned.
In response, the National Residential Landlords Association (NRLA) has called for a comprehensive plan and financial support to ensure energy efficiency goals are met without jeopardizing the rental property market.
The Call for a Slower Transition
Housing Secretary Michael Gove, speaking to The Telegraph, expressed his view that the government's current timeline for energy efficiency improvements in the private rented sector is too demanding. While he acknowledged the importance of moving towards greater energy efficiency, he emphasized that landlords are currently facing significant financial challenges.
Many are grappling with the prospect of making substantial capital investments to meet the new EPC targets, leading Gove to suggest relaxing the pace of implementation.
Ben Beadle, Chief Executive of the NRLA, echoed Gove's sentiment, stating that the original deadlines for EPC targets were unrealistic. The NRLA, while supportive of improving energy efficiency in rental properties, believes that a clear and realistic plan, along with a fair financial package to support landlords in making improvements, is essential for successful implementation.
The Need for Certainty and Support
As the debate on energy efficiency measures for rental properties continues, the NRLA emphasizes the need for certainty.
Landlords require clear guidelines on how and when the new EPC targets will be enforced to plan their investments effectively. The lack of a definite roadmap may lead to hesitation among landlords, potentially resulting in a shortage of rental properties.
The NRLA's Ben Beadle emphasized the importance of developing pragmatic and workable proposals, encouraging the government to work collaboratively with all stakeholders. A well-structured plan and financial incentives can incentivize landlords to invest in making their properties more energy efficient, benefiting both the environment and tenants.
Landlords' Dilemma: To Improve or Sell?
New research conducted by Green Building Renewables sheds light on the dilemma facing many landlords. According to their findings, a staggering 63% of landlords are considering selling their properties instead of making the required improvements to meet the new EPC targets.
This looming exodus from the rental market could exacerbate the already challenging housing situation, leading to a shortage of available rental properties.
The Minister of State for Energy, Andrew Bowie, has acknowledged the uncertainty surrounding the government's proposals to raise the minimum Energy Performance Certificate for rented properties. The delay in announcing the details further adds to landlords' anxieties and hinders their ability to plan for the future.
The call by Housing Secretary Michael Gove for a slower transition in implementing energy efficiency plans for the private rented sector reflects the concerns of many landlords facing significant financial pressures.
While the government aims to improve energy efficiency, it must strike a balance between environmental goals and the practical challenges faced by property owners. Collaboration between the government, landlords, and other stakeholders is crucial to developing a comprehensive and feasible plan that fosters energy efficiency while ensuring a sustainable rental market. Providing landlords with the certainty and financial support they need to make necessary improvements will be essential in achieving these shared objectives.
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