EPC REGULATIONS SCRAPPED?
21st Sep 2023
In a speech made today (20th September) about the Government’s green policies, Prime Minister Rishi Sunak has scrapped plans for legislation for landlords to upgrade their properties to EPC Band C.
This move was previously alluded to by Housing Secretary Michael Gove, who reportedly said that Government was expecting “too much, too quickly” from landlords, and earlier today by Home Secretary Suella Braverman.
Sunak also announced a slowing down of the move to replace gas boilers, requiring property owners to replace these once they have worn out, and then not until 2035.
Sunak said: “This country is proud to be a world leader in reaching net zero by 2050, but we simply won’t achieve it unless we change.
“We’re now going to have a better, more honest debate about how we get there, a more pragmatic, proportionate and realistic approach, that eases the burdens on families.”
The Prime Minister said these changes to future policy plans were made in order to open up for engagement in a national conversation around energy efficiency, without which legislation would only serve to alienate the public, particularly those “already struggling to make ends meet.”
He added that Government planned to turn the “challenge of net zero” into an opportunity, and suggested that more money would be on offer to landlords and homeowners to incentivise property upgrades.
Sunak added: “Under current plans, some property owners would have been forced to make expensive upgrades in just two years’ time.
“For a semi-detached house in Salisbury you could be looking at a bill of £8,000, and even if you’re only renting, you’re more than likely see some of that passed on in higher rents.
“That’s just wrong, so those plans will be scrapped.
“While we will continue to subsidise energy efficiency, we’ll never force any household to do it.”
Paresh Raja, CEO of Market Financial Solutions, said: “The U-turn on green pledges feels significant for Sunak and his party. It’ll create a furore that will last for some time.
“Looking specifically to the scrapping of the impending EPC regulations, we have to acknowledge what a complex issue this is.
“Many landlords will breathe a sigh of relief that there is no hard deadline for them to upgrade D-or-below related properties.
“Tenants may also benefit – rental prices might have risen in order to cover the costs of landlords upgrading their properties.
“However, many landlords will have already improved the energy efficiency of their properties at great expense, so today’s announcement may trigger some frustration.
“Moreover, the next general election could result in the winning party reintroducing new EPC rules anyway, so the decision brings further uncertainty into a property market that would benefit from greater stability.
“Meanwhile, there are some renters who will worry about living in properties with poor energy efficiency – their bills this winter will reflect that.
“The shift towards a greener property market is to be welcomed and encouraged.
“Today’s announcement will offer some relief to landlords in the short-term, but the long-term goal – as in every industry – must be to work together towards a more sustainable future.
“Ultimately, greater clarity around long-term reforms is required within the property sector at this time.”
The Intermediary
·20/09/2023
https://theintermediary.co.uk/2023/09/sunak-scraps-impending-landlord-epc-regulations/
