40% of privately rented homes won’t make 2028 deadline – agents claim

Forty per cent of privately rented homes in England are unlikely to achieve the energy efficiency rating target that is due to come into force in 2028.

Trade organisation Propertymark says its analysis of the latest English Housing Survey shows that 60 per cent of the rental sector will have achieved the minimum EPC C rating by that year, leaving the rest technically unable to be rented out.

The draft strategy includes a ‘preferred policy scenario’ for new tenancies to have a valid EPC rating of ‘C’ or above by 2025, extending to all tenancies by 2028.

But Propertymark is calling for the UK Government to move away from a one-size-fits-all policy in favour of energy efficiency proposals that consider a property’s age, condition, and size rather than its tenure.

Its Lagging Behind report highlights the variances in retrofitting costs based on individual characteristics and regional property values.

It includes proposals for local councils to develop ‘one stop shops’ to engage with landlords to find suitable methods to facilitate retrofit at pace which has also been recommended by stakeholders such as the Local Government Association.

Incentive?

“We knew it would be a huge challenge for the PRS to achieve the proposed 2028 target because the owners of rental properties will not directly benefit from lower energy bills, so where is their incentive?” says Timothy Douglas, (pictured) Head of Policy and Campaigns for Propertymark.

“The data in the English Housing Survey shows just how far there is to go.

“Our member agents are already seeing rental properties disappearing from the market for a variety of reasons and there is a real danger more could go with the EPC rating target hanging over them.”

Read more: Ultiamte guide to MEES and the EPC system.