Labour proposes legislation mandating energy-efficient standards for rental properties by 2030.
- Homes must achieve at least a grade C on the Energy Performance Certificate if rented.
- The policy could impose up to £10,000 per property for necessary energy upgrades.
- Landlords are eligible for assistance under Labour’s £6 billion home insulation initiative.
- A consultation will address potential resistance and financial caps on required upgrades.
Labour is set to introduce a significant policy mandating that all rental properties achieve a minimum of a grade C on their Energy Performance Certificate (EPC) by 2030. This measure aims to improve the energy efficiency of millions of privately rented homes, a move that could necessitate landlords spending up to £10,000 per property on essential upgrades like insulation, solar panels, or heat pumps.
Originally, similar regulations were anticipated under the Conservative government by 2028 but were later abandoned due to the financial implications for property owners. Labour’s proposal extends the deadline by two years, yet it is expected to renew disputes with landlords over the cost implications. The financial burden of these enhancements is projected to sum up to £25 billion across the sector.
The policy also extends to council housing, compelling local authorities to enhance the energy efficiency of their housing stock, which could require considerable public expenditure. Labour sources indicate readiness to face opposition to achieving these environmental objectives. In conjunction with this policy, Labour has also pledged to eliminate no-fault evictions and introduce additional tenant-focused reforms.
Housing campaigners have largely supported these new measures. However, concerns have been raised by landlords regarding the feasibility of remaining in the market under the upcoming regulations. A consultation period is expected to take place later this year, likely addressing the financial constraints landlords might face, with a proposed cap of roughly £10,000 on upgrade expenditures, aligning with prior proposals.
While landlords stand to benefit from Labour’s substantial £6 billion home insulation fund, specific assistance details are yet to be clarified. Notably, approximately 2.9 million privately rented homes currently fall short of the proposed EPC standard. Despite some progress, half of the energy audits on rented properties last year did not reach the targeted efficiency level.
Labour’s policy seeks to prioritise energy efficiency in rented homes, promising significant environmental and socio-economic impacts.
