"Targets must be 'realistic and achievable'"
Propertymark responded to a recent consultation by the UK Government on this issue and based on 350 written submissions from property professionals across England and Wales and roundtable discussions with member agents, Propertymark was able to convey the concerns and thoughts of the industry.
The Department for Energy Security and Net Zero (DESNZ) consulted on views of the UK Government’s intention to alter the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015, as well as the law that sets out arrangements for financing energy efficiency improvements.
In response, Propertymark stated that it 'supports efforts to enhance the energy efficiency of homes', but the targets must be 'realistic and achievable'.
The body said it is concerned that the proposals will create substantial disruption in the private rental sector as landlords face high bills for energy efficiency enhancements and that many landlords may struggle to afford the new proposed cost cap, making them unable to make the necessary changes.
The current proposal is to increase the maximum required investment for the private rented sector MEES to £15,000 per property before an exemption can be registered - Propertymark believes £5,000 per property is more realistic, and that a longer timeframe for implementation should be introduced to allow landlords to spread costs and enable the industry to recruit and train tradespeople needed to carry out works.
The UK Government’s favoured implementation timeframe is to require ‘new tenancies’ to achieve the higher standard from 2028 and ‘all tenancies to meet the higher standard by 2030.’
Timothy Douglas, Head of Policy and Campaigns at Propertymark, said:
“Propertymark wants to see more energy efficient homes, but the targets must be realistic and achievable. We have long said that the UK Government must do more to understand the finances of landlords and introduce measures that take into account the diverse nature of property types across England and Wales in the private rented sector. The timescales for implementing these changes will be key with recent legislative change in Wales and new proposals via the Renters’ Rights Bill in England. We look forward to continuing to engage with the UK Government on this issue, but it is vital that EPC reforms are clarified first and given time to bed-in, until we have sufficient numbers of skilled tradespeople in the market to carry out upgrades, and so that policymakers recognise the huge costs in doing works particularly the impact on landlords with lower value properties.”
