Around half a million rented homes could be lifted out of fuel poverty over the next five years, says the government as it launches a consultation to raise green standards in these households.
The energy department has reiterated its plan that all private landlord properties must meet an energy performance certificate rating of C by 2030 – up from the current minimum E rating.
The department estimates that 48% of private rented homes in England already meet the C standard, adding that upgrades will cost landlords between £6,100 and £6,800 on average by 2030.
The move will save renters up to £240 a year on their energy bills, the department says.
The government consultation, with tenants and landlords, on how to boost green measures in the private rented sector will include:
- Choices on how to improve the “fabric standard” of homes by installing such measures as loft insulation, cavity wall insulation or double glazing, solar panels and smart meters
- A maximum cap of £15,000 per property for landlords for upgrades, with support currently available from the Boiler Upgrade Scheme, and the Warm Homes: Local Grant, which begins this year
- An affordability exemption, which would lower the cost cap to £10,000 and may be applied to lower rental homes, or council tax bands
Energy secretary Ed Miliband says: “For years tenants have been abandoned and forgotten as opportunities to deliver warm homes and lower energy bills have been disregarded and ignored.
“These plans will also make sure that all private landlords are investing in their properties, building on the good work of many to upgrade their homes to Energy Performance Certificate C or higher already.”
Generation Rent chief executive Ben Twomey adds: “One in four private renters live in fuel poverty, the highest rate of any tenure.
“If we can’t afford to heat our homes properly that makes us vulnerable to ill-health and other problems in the home like damp and mould.”
But some rental groups argue that landlords will need more time to make these changes, partly because of a lack of builders in the UK to carry them out.
National Residential Landlords Association chief executive Ben Beadle says: “The chronic shortage of tradespeople to carry out energy efficiency works needs to be addressed, alongside a targeted financial package to support investments in the work required as called for by the Committee on Fuel Poverty and Citizens Advice.
“Importantly a realistic timetable is needed if the 2.5 million private rented homes, which will not currently meet the government’s proposed standards, are to be improved.”
Last September, the energy department announced it would move to improve energy standards in the rented sector, reversing moves by the previous government.
The Conservative administration had planned to force private landlords to upgrade rented homes to an energy performance certificate rating of C by 2030.
But this target, along with a host of other green measures, were scrapped by former Prime Minister Rishi Sunak in September 2023, citing cost-of-living pressures.
