The government has announced plans to introduce stricter energy efficiency standards for privately rented homes, aiming to lift up to 500,000 households out of fuel poverty by 2030. Under the proposals, tenants could save an average of £240 annually on energy bills.
The Department for Energy Security and Net Zero, led by Ed Miliband, launched a public consultation on the measures last Friday. The government intends to mandate that all private landlords in England and Wales meet higher energy performance ratings within five years. The proposed changes would see all rental properties achieve at least an Energy Performance Certificate (EPC) rating of C by 2030, an improvement from the current minimum rating of E.
According to government estimates, landlords will need to invest between £6,100 and £6,800 per property to comply with the new standards. Ministers argue that nearly half of private rental homes already meet the proposed EPC C standard and want to extend these improvements sector-wide, ensuring fairness among landlords while enhancing tenants’ living conditions.
Key Proposals The consultation seeks input from tenants and landlords on a range of proposed measures, including:
- Flexible Compliance Options: Landlords will have the choice to meet energy efficiency standards through methods such as loft insulation, cavity wall insulation, and double glazing before considering additional measures like solar panels, batteries, and smart meters.
- Cost Cap: A maximum spending limit of £15,000 per property, with support available through schemes such as the Boiler Upgrade Scheme and the Warm Homes: Local Grant.
- Affordability Exemption: A reduced cost cap of £10,000 for landlords of lower-rent properties or those in lower council tax bands.
- Extended Compliance Deadline: The deadline for landlords to meet the new standard has been pushed to 2030, offering two additional years compared to previous proposals. Homes already rated EPC A-C will be considered compliant until their current certificate expires.
The government is also reviewing its fuel poverty strategy, emphasizing home energy efficiency improvements and support for low-income households. In parallel, planned reforms would strengthen energy regulator Ofgem’s consumer protection role, facilitate upgrades for 300,000 homes under the Warm Homes Plan, and advance clean energy initiatives through the Clean Power Action Plan.
Ministerial Support Deputy Prime Minister and Housing Secretary Angela Rayner emphasized the government’s commitment to improving living conditions for renters. “For far too long, tenants have endured substandard housing. This government is taking swift action to address past failures, ensuring higher standards, better quality of life, and lower energy bills for working families,” she said.
Energy Secretary Ed Miliband echoed this sentiment, stating, “For years, tenants have been neglected as opportunities to deliver warm homes and lower energy bills were overlooked. These reforms will ensure landlords invest in their properties, while saving renters an average of £240 a year.”
The consultation period invites feedback from landlords and tenants, shaping the final framework for the sector-wide energy efficiency overhaul. The proposals mark a significant step in the government’s broader strategy to tackle fuel poverty and drive the transition to cleaner, more energy-efficient housing.