Landlords off the EPC hook - for now

For over two years, landlords have been seeking clarity on the proposed EPC rule changes, not knowing how or when they are to be implemented. Now they know. Kicked into the long grass.

Back in 2020, the government issued a White Paper suggesting that private landlords must ensure that their properties be rated at at least EPC level C for new tenancies by 2025 and for existing tenancies by 2028. Research by Savills suggests that 2.9 million homes will be affected. The cost of upgrades will vary but are estimated between £5,000 and £10,000 per property. The sheer physical amount of work is huge and the cost will run into tens of billions.

Since then. landlords have been expecting more detail, either as further announcements or a government Bill. Neither has been forthcoming.

At last, the minister responsible, Michael Gove, has broken the silence.

In an interview with the Sunday Telegraph, Mr Gove admitted that the time and cost pressures on landlords was simply too great, saying -

"My own strong view is that we're asking too much too quickly. We do want to move towards greater energy efficiency, but, just at this point, I think we should relax the pace that's been set for people in the private sector, particularly because many of them are facing a big capital outlay in order to improve that energy efficiency."

Some commentators have suggested that the government is keen to avoid sales by landlords unwilling or unable to make the upgrades which would put even more pressure on a rental market that is already in crisis.

So, one for the next government. Little extra clarity for landlords, but a reprieve, at least for the time being.