Labour is set to ban landlords from renting energy-inefficient homes by 2030.
- This policy requires rented homes to achieve an EPC rating of at least C.
- Landlords may face costs of up to £10,000 per property for necessary upgrades.
- Labour proposes a £6 billion home insulation package to assist landlords.
- The policies aim to improve living conditions and reduce fuel poverty.
In a bold move, Labour plans to ban the renting of properties that do not meet energy efficiency standards by 2030. This significant policy targets rented homes that fall below a grade C on their Energy Performance Certificate (EPC), potentially affecting millions of privately rented properties.
The financial impact on landlords could be substantial, with estimates of up to £10,000 per property for upgrades like insulation, solar panels, or heat pumps. Previously, similar measures were proposed by the Conservatives for 2028, but these were discarded due to the financial burden concerns highlighted by former Prime Minister Rishi Sunak. Labour’s approach offers a two-year extension for compliance, although it is expected to reignite tensions with property owners due to estimated total costs reaching £25 billion.
The regulations are not limited to private landlords; they also apply to council housing, requiring local authorities to improve their housing stock. Such upgrades could lead to significant public expenditures. Despite anticipated pushback, Labour is prepared to confront challenges to fulfil its environmental aims. This announcement coincides with Labour’s commitment to end no-fault evictions and introduce pro-tenant reforms.
A consultation is expected later this year, potentially capping landlord expenditure on property upgrades at around £10,000. Landlords will be eligible for assistance from Labour’s £6 billion home insulation initiative, although details of this support are yet to be delineated. Approximately 2.9 million privately rented homes currently have energy efficiency ratings below grade C, and while there have been improvements, around half of energy assessments on rented properties last year did not meet the proposed standard.
Ed Miliband emphasised that these measures are crucial for enhancing living conditions, stating, “Warmer homes, lower bills, and lifting over one million people out of fuel poverty. That’s the difference a Labour government makes.”
This ambitious policy aims to transform rental housing, benefiting tenants and contributing to environmental goals.
