by Sam Akbay
Improving Energy Efficiency in the Private Rental Sector: UK Government Consultation
The UK Government has recently intensified its efforts to enhance energy efficiency within the private rental sector across England and Wales. On 7 February 2025, a new consultation titled “Improving the Energy Performance of Privately Rented Homes: 2025 Update” was launched, aiming to gather feedback on proposed measures to elevate minimum energy efficiency standards to an Energy Performance Certificate (EPC) Band C by 2030.
Additionally, a Review of the Fuel Poverty Strategy has been introduced to ensure that improving energy efficiency in low-income and vulnerable households remains a priority, acknowledging that progress towards the statutory target—to upgrade as many fuel-poor households as is reasonably practicable to EPC Band C by 2030—has stalled.
Addressing Fuel Poverty in the Private Rented Sector
The private rented sector has the highest rate of fuel poverty compared to other tenures. This consultation aims to drive improvements across all housing sectors, with a particular focus on rental properties where tenants often face the highest energy costs.
The government’s proposals include:
- Setting higher minimum energy efficiency standards using new EPC metrics.
- Establishing a preferred timeline for implementation.
- Defining the maximum expenditure landlords must invest before qualifying for an exemption.
- Reviewing the existing exemptions regime and its potential expansion to short-term lets.
These changes aim to ensure rented properties are not only legally compliant but also provide warmer, safer, and more energy-efficient homes for tenants.
Key Proposals in the 2025 Consultation
- Enhanced EPC Requirements: All privately rented properties would need to achieve a minimum EPC rating of C by 2030.
- Implementation Timeline: The government proposes that new tenancies comply with the new standards from 2028, with all existing tenancies meeting the requirements by 2030.
- Investment Threshold: Landlords may be required to invest up to £15,000 per property to reach the necessary energy efficiency standards before qualifying for a 10-year exemption.
- Review of Exemptions: The consultation seeks views on revising the current exemptions regime, including considerations for short-term lets.
Balancing Energy Efficiency with Practicality
There has long been anticipation surrounding the extension of Minimum Energy Efficiency Standards (MEES) for privately rented properties. However, it is essential to set targets that are both ambitious and achievable.
The UK Government must recognize that landlords are crucial stakeholders in achieving energy efficiency goals. If the policies become overly demanding without sufficient financial support, it may lead to landlords withdrawing properties from the rental market, ultimately reducing housing availability and exacerbating the current rental demand crisis.
The Role of Letting Agents and Online Platforms
Under existing rules, landlords must obtain an EPC before marketing a property, and tenants must be given access to this information. The 2020 consultation proposed that letting agents and online property platforms should only list properties that meet the PRS regulations. However, the government has decided to keep this requirement under review while the PRS Database is being developed in England. This database could streamline compliance checks and help ensure rental properties meet energy efficiency standards.
One key question in the new consultation asks whether letting agents should be held accountable for ensuring all listed properties comply with PRS regulations.
Challenges in Achieving EPC C Ratings
Research from Propertymark has highlighted concerns about the feasibility of reaching an EPC C rating for many properties, particularly older homes. In 2020, the Buildings Research Establishment (BRE) reported that 21% of UK housing stock was built before 1919, with the highest proportion found in Wales (26%). Many landlords have voiced concerns that improving these properties to meet the required standard would be financially unviable.
A recent Propertymark survey found that 93% of letting agents have landlords who would struggle to meet the proposed energy efficiency targets. Without substantial grants or financial incentives, it is unlikely that these targets will be met within the proposed timeframe.
Looking Ahead: Realistic Solutions Needed
Propertymark has been actively engaging with policymakers, including Dr Miatta Fahbulleh MP, Minister for Energy Consumers, to provide insights on how new regulations could be implemented effectively. While there is broad support for improving energy efficiency, any new rules must be achievable without placing undue financial pressure on landlords.
Since Ed Miliband took office in July 2024, Propertymark has continued discussions with government officials to ensure that policies are practical, well-funded, and beneficial to both landlords and tenants. The consultation presents an opportunity for stakeholders to influence the final regulations and push for policies that support sustainable improvements in the rental sector.
Have Your Say
The Improving the Energy Performance of Privately Rented Homes in England and Wales consultation is a crucial moment for landlords, letting agents, and tenants to voice their concerns and recommendations. Likewise, the Review of the Fuel Poverty Strategy provides a chance to shape policies that will help reduce energy costs for the most vulnerable households.
If you are a landlord, property investor, or letting agent, we encourage you to stay informed and participate in these consultations. The future of the rental market depends on striking the right balance between environmental responsibility and economic feasibility.
For more updates on property regulations and expert insights, stay connected with Sam Akbay Property Agency.
For more detailed information and to contribute to the consultations, please visit the official UK Government websites:
- Improving the Energy Performance of Privately Rented Homes: 2025 Update: gov.uk
- Review of the Fuel Poverty Strategy: gov.uk
Engaging in these consultations is crucial for developing practical solutions that benefit both landlords and tenants, fostering a more sustainable and equitable rental market.
