Private tenants in the 2.4 million houses with an EPC rating below C may face years of expensive bills due to delays.
Due to delays in implementing new regulations requiring landlords to ensure their homes are more energy efficient, private tenants might spend an additional £1bn in gas and electricity bills.
The government has been accused of postponing the implementation of new measures requiring landlords to renovate their buildings to at least a C rating under the energy performance certificate (EPC) scheme.
Currently, privately rented properties are only required to satisfy the less efficient EPC band E, increasing heating costs for renters.
If landlords are forced to comply with the proposed new minimum energy efficiency criteria, almost 2.4 million privately rented properties in England that fall below the C band might realise substantial savings.
Ministers initiated a consultation on increasing the minimum requirement for privately rented properties in 2020 to require landlords to reach the C band level for new tenancies beginning in 2025 and existing tenancies beginning in 2028; the government still needs to enact the recommendations.
Jess Ralston, an energy expert at the Energy and Climate Intelligence Unit (ECIU), stated, “Due to their poor insulation, privately rented homes are frequently cold, unhealthy, and likely to cost the billpayer and taxpayer billions.”
National Residential Landlords Association (NRLA) stated in January that the 2025 implementation deadline was effectively “dead in the water” due to government delay.
If it takes an extra two years for the measures to become law and if landlords are then given time to comply, it could cost renters living in leakier band E housing £1 billion.
Landlords need more incentive to improve the energy efficiency of their rental homes by investing in insulation and more efficient heating systems, while renters are responsible for heating costs.
Nearly one-fourth of private rental properties are legally classified as “inadequate,” and the same proportion of tenants live in fuel poverty.
According to a recent analysis by Citizens Advice, 1,6 million children live in privately rented homes that are chilly, damp, or contain considerable mould.
Ralston questioned why something as basic as confirming a new standard was taking so long, given that it might save people money and stimulate growth when UK growth is, at best slow.
In January, the Department of Business, Energy, and Industrial Strategy reported that government funding contributed to the increase from 13% in 2010 to 46% in the proportion of dwellings with an energy efficiency grade of C or higher.
BEIS spokesperson: “We are investing over £6.6 billion to assist decarbonise homes and buildings and to ensure all homes meet EPC band C by 2035.”
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