New Energy Efficiency Rules for Landlords? What You Need to Know
The Government's latest energy efficiency proposals aim to improve rental property standards, but landlords face challenges in meeting new EPC requirements. With tight deadlines and practical concerns about implementation, it’s essential to plan ahead. At Cope & Co., we’re here to guide landlords through these changes and ensure a smooth transition
The UK Government has launched a new consultation on improving the energy performance of privately rented homes in England and Wales by 2030. This follows previous consultations from 2020 and seeks to establish higher minimum energy efficiency standards for rental properties.
While the ambition to reduce fuel poverty and improve the environmental impact of the private rented sector is commendable, landlords face significant challenges in meeting these new requirements. With potential costs reaching £15,000 per property, landlords need clarity, support, and a realistic implementation timeline to avoid severe disruption in the rental market.
At Cope & Co., we are committed to helping landlords navigate these changes with expert advice and practical solutions. Here’s what you need to know.
Key Proposals for Landlords
The Government's consultation outlines several significant proposals:
- New EPC Metrics & Higher Standards – The consultation proposes higher energy efficiency standards, prioritizing fabric improvements to rental homes.
- Cost Cap for Landlords – Landlords may be required to spend up to £15,000 per property on energy improvements before they can apply for an exemption. A potential affordability exemption could lower this cap to £10,000 for some properties.
- Tight Compliance Deadlines – New tenancies will need to meet the higher standard by 2028, while all rental properties must comply by 2030 (or have a registered exemption).
- Short-Term Lets & Smart Meters – The consultation is exploring whether short-term lets should also be covered under PRS regulations and how to encourage the installation of smart meters in rental homes.
- New PRS Database & Letting Agent Requirements – Letting agents and online platforms may be required to ensure that only compliant properties are advertised, though this is still under review.
The Challenges Landlords Face
The Government’s proposals present several major challenges for landlords:
The Cost of Compliance
Upgrading rental properties to meet EPC C standards could cost landlords up to £15,000 per property, with no clear financial support from the Government. Given that 70% of landlords are basic rate taxpayers, these costs will likely be passed on to tenants through rent increases.
Unrealistic Deadlines & Labour Shortages
The 2030 deadline requires that 5,000 rental properties per day be retrofitted—an impossible target given the shortage of skilled tradespeople. Current estimates suggest a shortfall of 166,000 skilled workers, making it extremely difficult for landlords to complete improvements within the proposed timeframe.
Risk to Housing Supply
Over 2.5 million rental homes have an EPC rating of D-G, many of which are older properties, Grade II listed buildings, or homes with solid walls. These properties are harder to retrofit and may require significant structural work. If landlords cannot afford improvements, they may exit the market, reducing housing supply and worsening the rental crisis.
What Needs to Change?
Both industry experts and landlord associations have raised concerns over the viability of these proposals. At Cope & Co., we believe that energy efficiency improvements must be fair, practical, and achievable.
I reiterate that this is currently a Consultation and I, along with many of the professional bodies that support the Private Rental Sector, would urge the Government to consider the following:
Introduce a Longer Implementation Period – A 10-year timeline would allow landlords to make improvements gradually rather than under rushed, unrealistic deadlines.
Provide Financial Support – The Government must offer grants, tax relief, or incentives to help landlords meet EPC requirements without excessive financial strain.
Address the Skilled Worker Shortage – Without enough trained tradespeople, landlords physically cannot meet these targets. Investment in training and apprenticeships is essential.
Exempt Hard-to-Retrofit Properties – Certain properties, such as heritage buildings and pre-1919 homes, must have realistic exemptions to avoid unnecessary financial burdens.
Engage with Landlords & Letting Agents – The Government must listen to the concerns of those directly responsible for implementing these changes, ensuring that policies are workable in practice.
How Cope & Co. Can Help
At Cope & Co., we understand the pressures landlords are facing, and we are here to help. Our team can assist with:
EPC Assessments & Improvement Plans – Find out what upgrades your property needs to meet future EPC requirements.
Navigating Exemptions & Compliance – Ensure your property is legally protected from potential penalties.
Accessing Financial Support – We can help you explore available grants, tax relief options, and funding for energy improvements.
Keeping You Updated – Stay ahead of legislative changes with our expert landlord updates.
If you have concerns about how these changes will impact your property portfolio, contact Cope & Co. today for expert guidance. We’re here to support you every step of the way.
