Thu, 27 July 2023 | EPC
In a bid to alleviate the mounting pressure on landlords and address concerns over rising household costs, Prime Minister Rishi Sunak has publicly supported Housing Secretary Michael Gove's proposals for a comprehensive reform of the Energy Performance Certificate (EPC) system in the private rental sector.
The government is said to be in favour of extending the deadlines for EPC improvements beyond the initially proposed date of April 2025, according to unnamed officials cited in a Whitehall briefing reported by the Financial Times. These officials argue that the current EPC system, which was originally conceived as an informational tool to meet the EU's requirements, is in need of "fundamental reform" since Britain's departure from the European Union.
The primary objective of the proposed reform is to ease the financial burden on landlords, who have been facing increasing pressure to meet mandatory efficiency standards within a tight timeframe. Sunak emphasized that he does not want to further burden voters or add to household expenses during a period of high inflation, especially when it comes to costs associated with environmental initiatives. Despite this, the UK remains steadfast in its commitment to achieving net zero carbon emissions by 2050.
Just this week, the government postponed the implementation of a £1.7 billion-a-year UK recycling scheme until after the 2024 General Election. The decision came after warnings that such a scheme could exacerbate the already soaring food and drink prices. This move underscores the government's cautious approach to introducing new measures that might have a significant impact on the cost of living for citizens.
Housing Secretary, Michael Gove, hinted at the impending EPC reform in an interview with the Sunday Telegraph, acknowledging that the government had been placing too much pressure on landlords to implement green measures rapidly. Gove asserted that the proposed 2028 deadline for landlords to meet the minimum energy efficiency threshold might need to be reconsidered to ease financial pressures.
The uncertainty surrounding EPC requirements has already led to a rise in the number of landlords deciding to sell their properties. According to Rightmove, approximately 16 per cent of homes listed on the platform were previously rented out privately, and stricter EPC regulations have emerged as the primary reason for landlords divesting their properties.
As the government aims to strike a balance between environmental commitments and economic considerations, the proposed EPC reform seeks to offer much-needed respite to landlords while ensuring progress toward the UK's ambitious net zero targets. The final details of the reform are yet to be unveiled, but stakeholders in the private rental sector eagerly await more clarity on the way forward.
For more information about the EPC regulations, or any other landlord legislation in place, don’t hesitate to contact one of our helpful lettings team, who will be able to answer and questions you may have.