The UK Governments Department of Energy and Net Zero Strategy have been targeting private rental homes to have a minimum Energy Performance Certificate of C by 2030. This blanket coverage has caused some entities to suggest that this date should be extended, to try and stop the inevitable landslide of rental properties being taken off of the rental sector.

There is already an imbalance between the number of properties available for rent and the vast figure of people requiring accommodation.

Some lenders including Paragon Bank, a specialist lender and savings bank which was founded in 1985, think a staggered approach to the introduction would be more appropriate. According to a new report by Paragon Bank:

Approximately 60% of properties in the private rental sector across England and Wales are currently at EPC D or below, and 1.6m properties would need to be upgraded annually to meet the 2030 target. 

They also point out that the government target of building 1.5 million new homes over the lifetime of this parliament, means there just isn’t enough workforce to cover the improvements needed and build the new homes. This is where landlords who potentially will have to spend thousands to upgrade will sell up instead and create a shortage.

Paragon Bank suggestion is

  • 2030 for new tenancies;
  • 2033 for extended tenancies;
  • 2035 for all tenancies.

Additionally, Paragon advocates the following measures in its consultation submission to support landlords to transition the PRS (Private Rental Sector) to minimum EPC C:

  • Revert to the original proposal for maximum investment cap of £10,000 and a seven-year exemption
  • Introduce a range of financial measures, such as the Warm Homes Grant, to incentivise landlords to invest in their properties
  • Ensure EPC reform is harmonised with the Energy Performance of Buildings regime
  • Implement a complementary skills and training programme to address the retrofit and construction industry skills shortage
  • Consider the regional discrepancies in energy-efficient properties, with the North and Midlands having a larger proportion of properties below EPC C compared to the South. This could lead to increased costs and disruption in these regions