With the Labour Government confirming plans to increase Minimum Energy Efficiency Standards (MEES) for private rental homes, here’s what letting agents need to know.
The Goodlord team
Aug 12, 2024
The Labour Government has confirmed its commitment to ensuring all rental properties achieve a minimum Energy Performance Certificate (EPC) rating of C by 2030.
Letting agents need to stay informed about the future of EPC ratings so they can effectively communicate these changes to their landlords.
In this guide, you’ll learn about the proposed changes and the future of the Decent Homes Standard, both of which will impact letting agents and landlords.
- What are the proposed changes to Minimum Energy Efficiency Standards?
- Are there already EPC improvements being made to properties?
- What is Labour’s Warm Homes Plan?
- What is the future of EPC ratings for letting agents?
What are the proposed changes to Minimum Energy Efficiency Standards?
One of Labour’s key missions in their manifesto is to “Make Britain a clean energy superpower,” with a focus on creating warmer homes to combat fuel poverty.
To achieve this, the government is prioritising the raising of EPC standards within the private rented sector and enacting the Warm Homes Plan.
Miatta Fahnbulleh, Minister for Energy Consumers, stated in Parliament, “This government is committed to reducing the number of fuel-poor households in England.”
Secretary of State for Energy Security and Net Zero, Ed Miliband, has reinforced these plans, emphasising the need to “make a dent” in the issue of fuel poverty. He added, “One thing this government will do that the last government did not is demand that landlords raise the standard of their accommodation to a proper energy performance certificate rating of C by 2030.”
While the specifics of how and when these requirements will be implemented remain unclear, the Warm Homes Plan highlights the goal of creating more energy-efficient homes.
🌹 Download our guide about Labour’s plans for the private rental sector 🌹
Are there already EPC improvements being made to properties?
According to the English Housing Survey, 72% of homeowners have implemented at least one energy-efficient measure in the last five years.
The most common improvement in privately owned homes was servicing or replacing the central heating boiler.
However, not all areas in England have properties that are up to date with their EPC ratings. A 2023 analysis by London’s City Hall found that 494,000 private rental homes in London have a substandard energy efficiency rating.
Additionally, the BBC reported in 2023 that six out of ten renters in Blackpool were living in energy-inefficient homes.
The investigation also revealed, “Out of 1.9 million inspections of rental homes over the past five years, more than one million fell below grade C.”
So, while some landlords and letting agents are making strides in improving energy efficiency, there is still significant progress to be made.
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What is Labour’s Warm Homes Plan?
As outlined in their manifesto, the Labour Party plans to implement the “Warm Homes Plan,” which will offer grants and low-interest loans to support investments in insulation and other improvements such as solar panels, batteries, and low-carbon heating.
The Party aims to collaborate with the private sector, including banks and building societies, to provide loans that accelerate home upgrades. Additionally, they plan to invest £6.6 billion over the next parliament to upgrade energy efficiencies in over five million homes.
What is the future of EPC ratings for letting agents?
As part of Labour’s Renters’ Rights Bill, a Decent Homes Standard will be introduced to the private rental sector to ensure all rental properties are safe, secure, and hazard-free.
Unlike the Conservatives’ Renters (Reform) Bill, the Labour Party intends to extend Awaab’s Law to the private rental sector, raising the standard further.
Awaab’s Law, originally introduced to the social housing sector in 2023, will require letting agents and landlords to meet specific standards for their properties, including addressing issues such as damp, mould, poor ventilation, low indoor temperatures, and poor energy efficiency.
Once the Renters’ Rights Bill is passed, landlords and letting agents will be legally obligated to rectify hazardous issues, including those related to energy efficiency, as soon as possible.
Failure to address these issues could result in legal action from tenants, as it would constitute a breach of contract.
Therefore, landlords and letting agents should begin making energy efficiency improvements now to avoid potential legal complications in the future.
This article is intended as a guide only and does not constitute legal advice. For more information, visit gov.uk.
