With a raft of legislation change set to transform the way the sector operates, new research shows it is Government plans on energy efficiency that are giving landlords sleepless nights.
Despite a host of pressures across the board, a survey by our research team here at the NRLA found members are more concerned by proposed changes to Minimum Energy Efficiency Standards than the impact of the – arguably further-reaching – Renters’ Rights Bill.
What do the plans propose?
Just to recap, the Government is currently consulting on its controversial plans to require an EPC rating of C for all rental homes by 2030. The plan will affect around 2.5 million rental homes, with a cost implication of up to £15,000 per property. Those whose homes fall below this standard once the deadline has passed will be banned from letting them out.
Ministers are also proposing a new way of measuring EPC ratings – a method it claims will give a more accurate picture of a property’s energy efficiency, taking into account a number of different factors including the fabric of the building and its heating system.
The Renters’ Rights Bill, on the other hand, will make comprehensive changes to the way in which almost all landlords run their businesses – marking the biggest shake-up to the private rented sector in decades.
What does the research say?
The research, conducted for the NRLA’s new quarterly publication Landlord Eye, found growing concern among landlords about the shape of future Minimum Energy Efficiency Standard (MEES) rules and the associated implications. The fact that the research was conducted before the consultation was unveiled reveals the depth of landlord concerns, with 1,262 landlords responding to the survey. In response to concerns over affordability, the Government is also exploring a new ‘affordability exemption’, which would lower the cost cap from £15,000 to £10,000 for certain properties – although it is yet to determine if this will happen and how exemptions could be determined. While these updates could offer some flexibility, it is anticipated the overall structure of exemptions will largely remain the same.
While, among landlords, the Renters’ Rights Bill attracted the largest volume of negative comment, it was energy efficiency – namely the cost and complexity of meeting any new energy standards – which drew the most negative of the comments.
Here at the NRLA we believe that, with the Government consultation now underway, landlord concern and anxiety over necessary investment levels will only continue to rise, which is why we are both campaigning for changes to the proposals and encouraging landlords to get on the front foot when it comes to being prepared.
What do we want?
In short, we are calling for a longer lead in time for the new rules, a comprehensive package of financial support to help landlords complete the works and significant investment to train up skilled professionals to carry out the work.
Without these, we believe it will be impossible for huge swathes of landlords to meet the new standards, with a potentially catastrophic impact on the supply of homes to let, at a time when an average of 12 households are already competing for each rental home.
How can I prepare?
While the plans are still at consultation stage and not set in stone, we believe early action is key. Here’s how you can get ahead of the curve:
- Upgrade where possible before 2026: If any of your properties can be brought up to EPC C now, consider doing so, as current EPCs at C ratings will remain valid after the new regulations come into effect
- Build relationships with multiple contractors: Relying on a single tradesperson won’t provide the flexibility needed as timelines tighten. Having a network of trusted professionals can make all the difference when demand surges. Building relationships with multiple contractors also gives you more options, especially if your tenant gives notice and your preferred contractor is unavailable.
- Check accreditation: If you plan to apply for Government grants make sure your contractors are TrustMark-registered, or hold the necessary certifications for government-backed schemes.
As the PRS moves towards higher energy efficiency standards, landlords who prepare early will be best to avoid disruption and stay compliant, while continuing to provide the warm and efficient homes their tenants need.
More information
- You can still respond to the MEES consultation, with our official guide on how to do it here.
- If you want to know more about our energy efficiency campaign, click here.
- For any FAQs on MEES click here.
- To know more about the Warm Homes: Local Grant, click here.
- The NRLA’s award-winning Training Academy runs a course on ?energy efficiency?for landlords and a?new retrofit course.?
- Part of the NRLA family,?Safe2?is the leading provider of property safety certificates, including EPCs, with exclusive discounts available for NRLA members. Visit nrla.org.uk/safe2?
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About the author
Ben Beadle is chief executive of the National Residential Landlords Association (NRLA), the UK’s largest trade body for landlords.
A landlord himself since the age of 20, Ben started out as property manager before working his way up through the ranks at the Tenancy Deposit Scheme.
He was then Operations Director at property management business Touchstone before overseeing the merger of the National Residential Landlords Association (NLA) and Residential Landlords Association (RLA) to create the new trade body earlier this year.
His key aims as head of the organisation are to strengthen the voice of landlords in Westminster and Cardiff, to improve the reputation of landlords in the media and to support members through information, training and accreditation.
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The views expressed in this content are solely those of the author alone and do not necessarily represent the views of TDS, its officers, or employees. To read more on TDS views, visit our Policies & Procedures webpage
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