Government Support Crucial to Retain UK Landlords Amid EPC C Target Challenges

Summary: Propertymark has urged the UK government to provide sustained funding and practical exemptions to help landlords meet the EPC C energy efficiency target by 2030. Without tailored support, particularly for older properties, landlords may exit the market, reducing the supply of private rented homes.

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Government Consultation Highlights Need for Tailored EPC Reforms

Propertymark has responded to the UK government’s consultation on reforms to energy performance certificates (EPCs), which include the introduction of the Home Energy Model. This new model will replace the current single cost metric with four headline metrics: energy cost, fabric performance, heating system, and smart readiness. The industry body emphasises that these reforms must not adopt a ‘one-size-fits-all’ approach, as this risks reducing the supply of rental properties, particularly in the private rented sector (PRS).

With many older properties in the PRS, Propertymark stresses the importance of applying exemptions and providing sustained funding to support landlords in meeting the EPC C standard by 2030, as outlined in the government’s Warm Homes Plan.

Risk of Landlords Leaving the Market Without Adequate Support

Propertymark warns that overly ambitious or poorly designed EPC targets could lead to landlords exiting the market rather than investing in energy efficiency improvements. The organisation states: “Without proper support, landlords may exit the market rather than invest.” This concern is particularly relevant for older or harder-to-treat properties, which may face significant challenges in achieving the required standards.

The body calls for a move away from uniform policies, advocating instead for funding and regulations that recognise differences in property age, type, and construction. “The UK government should target funding based on property archetypes, not tenure alone,” Propertymark adds, highlighting the need for a nuanced approach to energy efficiency policy.

Challenges for Older Properties Under New EPC Metrics

The new smart readiness metric assesses a property’s ability to generate its own electricity, typically requiring solar panels and a smart meter to achieve a C rating. Reports suggest the government may also restrict properties heated by fossil fuels, such as gas boilers, from attaining a C rating under the heating system metric, favouring electric heat pumps instead.

Propertymark points out that these changes could unfairly penalise landlords with older or heritage properties, which often face practical constraints in installing technologies like solar panels, batteries, or electric vehicle charge points. The organisation advocates for flexible application of the metric, including exemptions or alternative scoring pathways, to avoid unfair penalties for landlords and tenants.

Clear guidance for property agents and landlords on how these technologies are scored and their implications for EPCs will be essential to ensure the system is practical and understandable. Propertymark supports recognising new technologies but stresses the need for a proportionate approach that reflects the realities of the existing housing stock.

What This Means for UK Landlords

Landlords in the private rented sector should be aware that EPC reforms are evolving and may require significant investment to meet the 2030 EPC C target. However, Propertymark’s warnings indicate that without government-backed funding and exemptions, particularly for older properties, some landlords might consider leaving the market. This could reduce rental property availability, affecting tenants and the wider housing market.

Landlords should monitor government announcements closely and engage with industry bodies to understand how the reforms will impact their properties. Staying informed about potential exemptions and funding opportunities will be crucial for compliance and maintaining rental portfolios.

Suggested internal link anchors

• energy performance certificates
• private rented sector
• EPC C target
• energy efficiency policy
• government funding for landlords
• property archetypes
• smart readiness metric
• heating system metric
• solar panels installation
• landlord market exit risks
• Warm Homes Plan
• energy efficiency exemptions

TLA update

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