The government previously announced plans to increase Minimum Energy Efficiency Standards (MEES) in the private rented sector. You may have seen my past blog on MEES is a MESS. 

So where are we now?

Bit of background

In 2020, the government announced plans to increase Minimum Energy Efficiency Standards (MEES) for the Private Rented Sector. The proposals outlined that private rented properties would need to have an EPC rating of C or more by 2025 on new tenancies, and 2028 for existing tenancies.

Recent data showed that the energy efficiency of properties available on the rental market is slowly improving. With a 16% increase on the number of properties with an EPC C rating or above since January 2019.

At the same time, the number of rental properties with EPC ratings D to G dipped by 11%. To be honest I feel this is more to do with landlords deciding to offload any properties below an E, rather than choosing to invest in trying to improve the EPC of a Victorian cottage from an E to D – and therefore still miss the mark!

Admittedly those landlords who we are working with to increase their portfolio are steered toward properties with an EPC of C or above.

What will affect EPC changes?

The Renters Reform Bill does link in the Decent Homes Standard which is to be reported to be expanded into to the private rental sector.

So far, only a consultation but the proposal states:

‘That homes must provide ‘a reasonable degree of thermal comfort.’ 

When will the increased standards be formalised?

We just don’t know! 

The only media report was in the Telegraph months ago, reporting that landlords would be given until 2028 to meet the new energy efficiency requirements, yet no official announcement has been made to confirm this date.

Matched with this, a delay on the ban of gas boilers is being considered by the Government, according to reports. A Downing Street source told The Times there was an ‘evolving conversation’ on different net zero policies, including the gas boiler ban.

The current target is for no gas boilers to be installed in new homes by 2025, and for the phasing out of boilers altogether to begin in 2033.

It seems that Mr Gove has said that homeowners and landlords must be given more time to get rid of gas boilers. It has been reported that he has warned against ‘creating a backlash’ by pushing too hard towards a roll out of alternative heating systems, such as heat pumps.

What should you do to prepare?

Really the question should be what you can do to prepare. Given that we don’t know if or when any changes will happen, it is very difficult to advise anything. 

To be honest if you are reading this you are a landlord that like us, cares about the type of property you provide to your residents. Over the last two  years we have been working with our landlords to make improvements where they can. This has meant anything from upgrading the insulation in the loft to putting in new double glazing.

I could guide you to look at what your EPC advises, but the guidance has changed over the last two years. If you had an EPC carried out in 2020 the main advice to achieve a higher grade was to improve the underfloor insulation. Which, let’s be honest, is impossible in most apartments and houses with solid floors. More recent EPCs are now pointing toward solar heating, but given there are local reports stating we do not have an infrastructure to handle all this extra energy, I am yet to be convinced that this will work. 

What has been indicated for the last two years is that there will be a cap on the changes that need to be made to improve efficiency which has been put at £10,000. If the cost to make improvements is over this an exemption will be given. Instant loophole?!

Conclusion 

Until everyone makes up their mind about what is required, just provide the best home that you can and wait for the next soundbite!