Landlords should be provided with grants, interest free loans, and taxation incentives to meet the UK government’s proposed Minimum Energy Efficiency Standards (MEES) by 2030, Propertymark argues.
Currently, landlords are prohibited from letting a property if the EPC is below an EPC E rating, subject to certain exemptions.
Propertymark wrote to Ed Miliband, the secretary of state for energy security and net zero, who confirmed that landlords will have to ensure their properties are EPC C by 2030.
The trade body for agents also used the opportunity to query support and incentives for private landlords and homeowners to decarbonise, as well as clarity on the previous government’s MEES target of EPC B by 2030 for non-domestic stock.
Miliband confirmed that his department are still considering support and incentives for private landlords. However, the UK government intends to invest in energy efficiency and help homeowners through a variety of schemes like the Boiler Upgrade Scheme and the Great British Insulation Scheme, which deliver funding via installers, energy companies, and other providers.
The Warm Homes Plan is one of the options the secretary of state is considering delivering to provide a fair, proportionate and affordable approach to enhancing the energy performance of owner-occupied homes. It will offer grants and low interest loans to encourage investment in insulation and other home improvements to reduce bills.
Banks and building societies will be two of many private sector bodies the UK government will collaborate with to issue further private finance to accelerate energy efficiency upgrades and low carbon heating.
Miliband will also be revisiting the previous government’s policy of non-domestic stock to meet EPC B by 2030 to ensure fairness. Propertymark aims to advocate for advice services and grants for decarbonisation of non-domestic properties.
The professional body continues its call to the UK government to end the one-size-fits-all policy and develop energy efficiency proposals that meet the diverse characteristics and archetypes of private and owner-occupied property.
The secretary of state also highlighted a recent meeting between Propertymark and DESNZ civil servants to discuss the digitalisation of the exemptions register, with the prospect of further member engagement to test new systems.
MEES Standards apply to private rented sector property in both England and Wales. Propertymark has recently met with the Development Bank of Wales who are considering a pilot scheme for a free assessment potentially leading to grants and interest free loans to decarbonise the owner-occupied sector.
Tim Thomas, policy and campaigns officer at Propertymark, said: “Clarity from the UK government on new energy efficiency targets is vitality important and there must be sufficient financial and practical support to help landlords meet the legislation and contribute towards Net Zero targets 2050. Without this support, and an understanding of the diverse nature of property, targets are unlikely to be achieved.
“As the clock continues to tick down to 2030, the sector also requires urgent clarity on exemptions, including the level of a cost-cap exemption, and if the UK government intends to introduce interim milestone targets.”
