The rental sector is warning the government of the devastating impact of changes to Energy Performance Certificate (EPC) rules. The new regulations, which come into effect in April 2018, will require landlords to make energy efficiency improvements to their properties before they can be rented out.
The changes are part of the government’s Clean Growth Strategy, which aims to reduce carbon emissions by improving the energy efficiency of homes. However, the rental sector is concerned that the cost of these improvements could be too high for many landlords, leading to an increase in rental prices or a decrease in the availability of rental properties.
The National Landlords Association (NLA) has estimated that the average cost of making energy efficiency improvements to a rental property could be as much as £3,500. This is a significant amount for many landlords, particularly those who own multiple properties. The NLA has also warned that the cost of these improvements could be passed on to tenants in the form of higher rents.
The NLA has called on the government to provide financial support to landlords to help them meet the new regulations. They have suggested that a grant scheme could be introduced to help landlords cover the cost of energy efficiency improvements.
The changes to EPC rules could also have a negative impact on the availability of rental properties. Landlords may be unwilling or unable to make the necessary energy efficiency improvements, leading to fewer rental properties on the market. This could lead to an increase in competition for rental properties, pushing up rents even further.
The government has acknowledged the concerns of the rental sector and has promised to review the regulations before they come into effect. However, the NLA has warned that any delay could have a damaging effect on the sector and has called for urgent action from the government.
The changes to EPC rules could have a significant impact on the rental sector and it is important that the government takes action to ensure that landlords are not unfairly burdened with additional costs. Without financial support, many landlords may be unable to make the necessary energy efficiency improvements, leading to higher rents and fewer rental properties on the market.