New energy efficiency – how can I prepare?

As you will no doubt be aware by now, 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 will also introduce 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.

Latest research from the NRLA shows that of all the changes facing the sector – including the Renters’ Right Bill, which will affect almost all landlords – it is the new energy efficiency rules that are keeping landlords awake at night.

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 undertaken before the consultation was unveiled further underlines the depth of landlord concerns.

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.

What is the NRLA doing?

The NRLA is campaigning for changes to the proposals and calling for a longer lead-in time for the new rules and a comprehensive package of financial support to help landlords complete the works. While some funding has been earmarked this is dependent on specific eligibility criteria, or ringfenced for certain local authority areas.

We are also calling for significant investment to train up skilled professionals – with the impact of a shortage of tradespeople one that should not be underestimated.

Impact of the skills shortage

To meet the proposed new targets, around 5,000 privately rented homes would need to be retrofitted every working day until 2028 - and that’s if the work started immediately.

If most landlords delay action until 2026 to ensure they have the full, official guidance, the required pace of upgrades will become near impossible, particularly given the limited availability of contractors. A recent report from Kingfisher reveals a current shortfall of 166,000 skilled tradespeople in the UK, a gap projected to rise to 250,000 by 2030. Without urgent investment in training and workforce development, the sector simply won’t have the capacity to deliver on these ambitious targets.

We believe that unless the Government makes significant changes to proposals as they stand, 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.

It is also important landlords get on the front foot ahead of the new legislation.

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 game:

• 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 positioned to avoid disruption and stay compliant. We are also encouraging as many members as possible to respond to the consultation, to ensure landlords’ voices are heard.

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 FAQ 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.