New Energy Efficiency Rules for Landlords

2023-09-29
Industry News

After Prime Minister Rishi Sunak announced a rollback on plans to force landlords and homeowners to spend ‘substantial sums of money’ on energy efficiency improvements, reactions have been mixed. A housing associations body has branded the move ‘hugely disappointing’, while landlords, who would have been expected to pay up to £10,000 to upgrade their properties to EPC rating C by 2025, have welcomed the reprieve from meeting the new targets.

Sunak’s announcement means households will have significantly more time to install heat pumps or alternative low-carbon solutions. Now, only 80% of gas boilers are expected to be phased out by 2035. ‘We will never force anyone to rip out their existing boiler and replace it with a heat pump,’ Sunak said. ‘You’ll only ever have to make the switch when you’re replacing your boiler anyway - and even then, not until 2035.’

Going forward, landlords won’t have to pay out immediately, but there’s criticism that renters will face higher heating costs in poorly insulated properties. The National Housing Federation, representing housing associations in England, warned that scrapping targets ‘could lead to people facing higher bills for years to come’. The Energy and Climate Intelligence Unit (ECIU) stated that the change in planned legislation could cost UK households almost £8 billion more in bills over the next decade.

However, there will be increased support through the boiler upgrade scheme, which will provide grants to at least partly cover the cost of replacing a gas boiler with a biomass boiler or heat pump. Sunak announced that grants will be increased by 50%, allowing people to access up to £7,500. Octopus Energy has even offered to install heat pumps for free with this government support.

While this announcement has been welcomed by some, not everyone is pleased. National Housing Federation chief executive Kate Henderson said, ‘It’s hugely disappointing to see the government row back from its commitments to net zero, particularly on improving the energy efficiency of our homes. Making homes more energy efficient is a win-win, not only helping our planet but also boosting our economy by creating jobs and, crucially, saving money.’

Sources: The Times, LondonLovesProperty

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