Propertymark has warned that the Government’s proposed Minimum Energy Efficiency Standards (MEES) risk causing widespread disruption in the private rental sector unless a more flexible, property-specific approach is adopted.
Responding to a consultation by the Department for Energy Security and Net Zero (DESNZ), Propertymark argued that a one-size-fits-all framework for Energy Performance Certificate (EPC) ratings fails to account for the wide variation in the age, type and value of rented properties across England and Wales.
The organisation gathered feedback from over 350 agents and held roundtables to reflect industry sentiment.
The government is consulting on changes to the Energy Efficiency (Private Rented Property) Regulations 2015 and the Energy Act 2011 to raise MEES thresholds.
EPC STANDARDS
Current proposals would require rental properties to meet EPC rating C by 2028 for new tenancies and by 2030 for all tenancies. Landlords would be required to invest up to £15,000 per property before qualifying for an exemption.
Propertymark contends that this threshold is unrealistic and likely to result in a significant number of landlords withdrawing from the sector, particularly in regions with older housing stock.
CAPPED COSTS
The organisation recommends a reduced cost cap of £5,000 per property, which it says would strike a fairer balance between environmental goals and financial viability.
The body also called for a reformed EPC metric that more accurately reflects individual property characteristics, as well as a longer implementation window to allow landlords to spread costs and enable the recruitment and training of skilled tradespeople.
Additional recommendations include targeted grant funding and incentives to help landlords decarbonise their properties ahead of the deadline, reducing the potential burden on the exemptions system.
Propertymark warned that without these changes, the private rented sector may see a contraction in available housing stock, further exacerbating supply pressures in an already tight market.
REALISTIC AND ACHIEVABLE
Timothy Douglas, Head of Policy and Campaigns at Propertymark, says: “Propertymark wants to see more energy efficient homes, but the targets must be realistic and achievable.
“We have long said that the UK Government must do more to understand the finances of landlords and introduce measures that take into account the diverse nature of property types across England and Wales in the private rented sector.
“The timescales for implementing these changes will be key with recent legislative change in Wales and new proposals via the Renters’ Rights Bill in England.
“We look forward to continuing to engage with the UK Government on this issue, but it is vital that EPC reforms are clarified first and given time to bed-in, until we have sufficient numbers of skilled tradespeople in the market to carry out upgrades, and so that policymakers recognise the huge costs in doing works particularly the impact on landlords with lower value properties.”
