EPC reprieve for private landlords?

The Telegraph yesterday published an article claiming that the government is considering extending the deadline for landlords to achieve an EPC rating of C or above or face being unable to let their properties.

In early 2021, the government issued a consultation laying out plans to compel landlords to have an Energy Performance  Certificate (EPC) of rating C or above by 2025 for new tenancies and by 2028 for existing tenancies. At that time, the English Housing Survey estimated that less than 50% of privately rented properties met this standard, though this has since improved.

It was expected that legislation would follow, but to date, none has been forthcoming.

The Telegraph now reports that ministers are considering extending the deadline for new tenancies to 2028, in line with existing tenancies. If so, a huge number of of landlords will breathe a sigh of relief.

Landlords with potentially non-compliant properties face a dilemma - to spend money on upgrades, estimated at between £5,000 and £15,000, or to sell their properties.  The government's own figures suggest around two million properties are likely to be affected. Just a relatively small percentage of landlords choosing to sell could severely impact the rental market.

Implementing the original 2021 proposals could be held up by any or all of - 

1.  Lower rated properties tend to be older buildings, lower cost and rented to lower income groups. Many of these properties could be lost to the rental market, with no alternative housing available for their current tenants.

2.  There are 4.6 million households in the private housing sector. If just 30% of these need upgrades, it is extremely unlikely that there is the skilled manpower needed to complete the task within the limited timeframe remaining. For this reason, the National Residential Landlords Association recently described the 2021 proposals as 'dead in the water' as a result of the delay.

3.  There are doubts about the relevance of EPCs in their current form. They were introduced in 2007 to ensure that buyers were aware of potential energy costs. Today, net zero is at least equally important and it may be that EPCs have to be reworked to reflect the new priorities.

If The Telegraph are correct in their reporting, more time can be given to addressing these issues.

In days past, we may have been sceptical of a 'leak' from an unnamed source, but with unattributed briefings to national newspapers now seeming to be a preferred precursor to official announcements, we have to give The Telegraph's report some credence.