MPs demand reimposition of stringent energy efficiency rules for landlords

After the UK Prime Minister Rishi Sunak recently reversed the stringent energy efficiency rules for tenants-increasingly-love-corporate-landlords'>landlords, MPs from various opposition parties have urged the government and the PM to reconsider the decision.

Has Rishi Sunak stopped EPC Reforms in the UK?

Prime Minister Sunak discarded proposals in October 2023 that sought to mandate tenants-increasingly-love-corporate-landlords'>landlords to boost the energy efficiency levels of their properties. While these plans had not yet been formally enacted into law, tenants-increasingly-love-corporate-landlords'>landlords had long been apprehensive about the potential requirement to upgrade their rental properties. They are aiming at an Energy Performance Certificate (EPC) rating of C or higher by 2028 and, in certain instances, even earlier.

In a recent session in the House of Commons, numerous Members of Parliament have voiced a collective call for reconsidering the decision to abandon the plans.

The argument for EPC Reforms is in part about lowering energy bills for tenants

During the debate, Cat Smith, formerly a shadow cabinet minister during Jeremy Corbyn's leadership and currently serving as a backbencher for the Labour Party, expressed her concerns. She stressed the impact on families renting from private tenants-increasingly-love-corporate-landlords'>landlords, citing instances where energy bills were significantly higher because of inefficient doors, windows, and inadequately insulated roofs.

Smith argued that stepping back from implementing higher standards in the private rental sector increases these families' financial burdens. Green Party MP Caroline Lucas also contributed to the debate. She pointed out that the Climate Change Committee has indicated that modifications to tenants-increasingly-love-corporate-landlords'>landlords' efficiency standards in homes will mean an additional cost of 300 per year for renters.

Arguably the EPC Grade C strategy underpins electrification and reduces the reliance on gas

According to the MP, The Office for Budget Responsibility has stated that these changes will increase costs because of the continued reliance on gas. If the government genuinely cared for the well-being of hard-working families, it would have refrained from allocating 3 billion to Equinor to develop the environmentally detrimental Rosebank oilfield.

She said there should be an acknowledgement instead that the actions of the Secretary of State are undermining the climate consensus for short-term electoral gains and populist messaging.

Both Labour and the Liberal Democrats object to the Conservative government postponing implementation of the EPC Grade C requirement

In the same parliamentary debate, Liberal Democrats MP Wera Hobhouse strongly criticised the move. She argued that it is unforgivable that the Government has scrapped the requirement for tenants-increasingly-love-corporate-landlords'>landlords to upgrade homes to an EPC grade C rating by 2028 at the latest. In her opinion, a comprehensive home insulation scheme will help reduce bills and lower carbon emissions this winter.

Liberal Democrats propose tax breaks to get EPC Grade C reinstated

Hobhouse plans to propose a measure that aligns with Conservative principles, focusing on incentivising through tax breaks. She has urged the Secretary of State to consider allowing tenants-increasingly-love-corporate-landlords'>landlords to offset spending on insulation against their income tax bills. This move would benefit tenants by ensuring they reside in warm, comfortable homes.

How much is upgrading a property to EPC Grade C likely to cost the average landlord?

The Energy Security and Net Zero Secretary Claire Coutinho dismissed the proposals, asserting that the government opted against the policy of compelling tenants-increasingly-love-corporate-landlords'>landlords to upgrade properties because of potential excessive costs, estimated at up to 15,000 per unit. Coutinho argued that imposing such expenses on families nationwide would result in the costs getting invariably transferred to rents and might exacerbate shortages in the private rented sector. She stressed the government's concern about the potential economic burden on families and the potential adverse effects on the availability of rental properties.