Propertymark, the professional body representing property agents across the UK, has called on the government to rethink sweeping energy efficiency reforms for the private rental sector, warning that blanket regulations risk destabilising the housing market.
In its official response to a government consultation, Propertymark urged ministers to tailor proposed new rules to individual property circumstances, rather than applying uniform standards. The warning comes amid plans to tighten energy performance regulations as part of wider efforts to decarbonise the UK’s housing stock.
The consultation, led by the Department for Energy Security and Net Zero (DESNZ), is considering updates to the Energy Act 2011, including a proposal to increase the cap on mandatory landlord spending for energy improvements from £5,000 to £15,000 per property.
Propertymark, drawing on insights from 350 industry professionals and roundtable events across England and Wales, said such changes could price out smaller landlords and lead to a significant reduction in available rental properties.
“We support the drive for greener homes, but the targets must be realistic and achievable,” said Timothy Douglas, head of policy and campaigns at Propertymark. “There must be a better understanding of the financial pressures facing landlords, especially in a sector where many properties are older, lower in value, and more costly to upgrade.”
The government’s current proposal would require all new tenancies to meet Energy Performance Certificate (EPC) ‘C’ standards by 2028, with existing tenancies expected to comply by 2030. Propertymark is instead advocating for a phased approach to allow landlords more time to manage the financial and logistical challenges of retrofitting.
Concerns over the proposed £15,000 cap were echoed by letting agencies across the country. One large agency in the West Midlands warned that such costs could push landlords to exit the market entirely, while a South West-based firm said many properties in the region would fall short of the new standards, threatening rental stock levels.
The trade body also highlighted the need for government-backed financial support and early incentives to encourage compliance, noting that a sudden surge in demand for retrofit services could overwhelm the limited pool of skilled tradespeople.
Douglas added: “Without tailored solutions and sufficient support, these proposals could not only impact landlords, but also reduce the supply of rental homes at a time when demand continues to rise.”
The government’s consultation remains open as it considers how best to balance environmental goals with the realities of the rental market.