From April 2018 new lettings for privately rented homes must meet the minimum energy efficiency standard set at an Energy Performance Certificate (EPC) rating of E.
The LGA supports Government proposals to introduce a capped landlord contribution to the cost of meeting the minimum standard, replacing the current principle of “no upfront cost” to landlords. Rather than setting a national cap, government should consider options for setting cost caps locally or regionally to reflect variations in installation costs and rent levels. The submission also considers the cost of enforcing the proposals.
Key messages
- The LGA supports the introduction of a landlord contribution element to meet the EPC E standards. Provision to meet the upfront cost through activity funded by energy suppliers and “pay as you save” finance is limited and will leave a funding gap in bringing F and G rated properties up to standard. The regulations, as currently framed, are difficult for councils to enforce because of the “no upfront cost” exemption.
- A nationally set cost cap is a blunt instrument. Government should consider options for setting cost caps locally or regionally to reflect variations in installation costs and rent levels.
- Any new requirements for enforcement activity must be properly resourced. Financial pressures mean that trading standards are unlikely to prioritise existing powers to enforce the legal requirement for private landlords to provide an EPC certificate for their property. Local and central government will need to work together on an updated impact assessment for the proposals.