Fewer homes to rent amid energy confusion, say landlords

Uncertainty around energy regulations has led to fewer rental properties, landlords say.

The government was planning on introducing energy efficiency targets for landlords in England and Wales, to be met by April 2025.

But Prime Minister Rishi Sunak has now axed these plans.

The National Residential Landlords Association (NRLA) said the uncertainty had led to landlords not investing as much into rental properties.

Despite "welcoming" the savings this will mean for landlords, the NRLA said the government should "develop a full plan that supports the rental market to make the energy efficiency improvements we all want to see."

The government was planning to introduce energy efficiency targets for landlords in England and Wales, to be met by April 2025.

By law, all homes that are sold or rented must have an Energy Performance Certificate (EPC) which tells you the energy efficiency.

The EPC rating goes from from A (most efficient) to G (least efficient) and by installing insulation, the efficiency of your home can be improved.

Data shows less than half of private rental homes had an energy efficiency rating of A to C in England last year.

The average efficiency rating in England and Wales is band D, according to the Energy Saving Trust and the average cost of improving a rental dwelling to reach a minimum of C grade was £7,430.

In 2020, more than 12 million homes had an EPC rating of D or worse.

There had been plans to fine landlords who failed to upgrade their properties to level 'C' of energy efficiency, but these have now been dropped.

This means that landlords will not have to pay to insulate homes they do not live in, but their renters may face costs via higher energy bills.

The prime minister's speech also touched on the heating of homes, particularly efforts to transition from boilers to heat pumps, although there were no major policy changes in this area.

The government has set out an exemption to phase out fossil fuel boilers by 2035 - pushing it back from 2026. This is expected to cover about a fifth of homes.

Mr Sunak also announced an increase in grants to help those making the transition from boilers to heat pumps - this would rise from £5,000 to £7,500.

"There are no strings attached - the money will never need to be repaid," he said, adding that people would not be forced to make the change.

"We'll never force anyone to rip out their existing boiler and replace it with a heat pump," he said.