Landlords with properties that have an energy performance rating of F or G will not be expected to pay up to £5k in order to improve the energy efficiency rating of the property, after a recommendation to raise the cap was rejected.
A proposal to increase the cost cap (which is currently £3500) was put forward by the Department for Business, Energy and Industrial Strategy (BEIS) select committee earlier this year in its report “Energy efficiency: building towards net zero: Government.
However, responding this report and this recommendation last week, the Government rejected to proposal to increase the cost cap.
In the official response, which can be read here, the Government said:
“Modelling showed that a cap of £3,500 would enable 48% of EPC F and G properties to be improved to EPC E (as opposed to the 32% indicated at the consultation stage) with the remaining 52% all able to make some level of improvement while not reaching EPC E. Our analysis showed that the average cost of improving an F or G rated domestic private tented property to EPC E is likely to be around £1,200, while the average cost for those making as much progress as possible towards Band E is estimated to be £2,000.
Minimum Energy Efficiency Standards
Since 2018, it has been a requirement for landlords entering into new tenancies to make sure that their rental properties have a minimum energy efficiency rating of an E (unless they qualify for an exemption)
This requirement will also apply to private landlords for existing tenancies from April 2020. The majority of landlords will be unaffected by the change, because their properties will already be compliant.
