Domestic tenancies – a minimum EPC rating of C from 2025?

In addition to the action plan for EPCs, which is relevant to commercial and residential property, the Government has also published a consultation on raising energy performance standards for privately rented homes in England and Wales. Currently, unless a registered exemption applies, the minimum energy efficiency standards (MEES) make it unlawful for residential landlords to let or continue to let certain domestic private rented property with an EPC rating of F or G. There are various options put forward in the consultation but the Government’s preferred policy scenario is to require:

• New domestic tenancies to reach an energy efficiency rating of C from 1 April 2025; and
• all domestic tenancies to reach an energy efficiency rating of C by 1 April 2028.

There is a proposal to increase the maximum amount a landlord is required to invest to £10,000 together with proposals to encourage compliance and strengthen existing enforcement options. There is also a focus on the quality of the work carried out and increasing the uptake of smart meters.

The consultation is open until 30 December 2020. The government response to this consultation is planned for Spring 2021, with regulations to follow in Autumn 2021.

This consultation also references other commitments and policy areas being developed. These include the Heat and Buildings Strategy, to be published later this year, which will set immediate actions for reducing emissions from buildings. The Energy White Paper is also expected to be published at this time.

The government issued a consultation on raising energy performance for commercial buildings in October last year - with a proposal that, by 2030, all non-domestic privately rented property in England and Wales achieves an EPC rating of B as a minimum, provided the remedial action required meets a seven-year payback test and is therefore cost effective.  You can read more about this here.