Energy Performance Reforms

Consultations on proposals to increase minimum efficiency standards for privately rented homes in England and Wales by 2030 are underway.

This follows our previous article: Update to the Renter’s (Reform) Bill – Renters Right Bill.

The proposals aim to:

• Require all private landlords to meet a higher standard of EPC Band C or equivalent in their properties by 2030
• Landlords must first meet a primary ‘fabric’ performance standard (through measures such as loft insulation, cavity wall insulation, and/or double glazing). Landlords must then meet a ‘secondary’ standard, either a smart readiness metric or a heating system metric (through measures such as batteries, solar panels, and smart meters)
• Set a £15,000 cost cap per property that allows properties to be exempt for 10 years from the new standards if more than £15,000 would need to be spent on upgrades
• Introducing an affordability exemption, which would lower the cost cap to £10,000 and could be applied based on lower rents or council tax band
• Increase the maximum possible fine for non-compliance with the regulations to £30,000 per property, for each breach.

What does this mean for landlords?

EPC (energy performance certificates) are already required to be given to tenants by landlords before a valid Section 21 Notice can be served to recover possession of their property.

The proposed changes mean that we are likely to see a move away from the current system of providing a headline EPC metric (banded energy efficiency rating) and more movement towards using multiple metrics. It is hoped that this will provide a more complete overview of a building’s energy performance.

The new standards are set to apply on properties to let on new tenancies from April 2028 and are to apply to all tenancies from April 2030.

Where landlords are looking to serve a Section 21 Notice, if the EPC certificate shows non-compliance with the new standards from April 2028, then the Section 21 Notice will be invalid. Securing an updated compliant EPC will delay the possession process.

How can Ashtons help?

We act for various landlords in the private rented sector on a wide range of issues. We can give preventative advice and assistance to ensure that landlords are fully compliant with the relevant regulations. We can also prepare Assured Shorthold Tenancy Agreements for you to use.

If a problem arises, we can help resolve it, whether by recovering possession of your property or otherwise resolving issues with your tenants.

Contact our property disputes solicitors today

If you have any questions regarding the Renters Right Bill, or you are a landlord who needs assistance with your tenants, please get in touch with our specialist Property Litigation team by using our online enquiry form or calling 0330 404 0738.