The government is running a consultation on a proposal to raise the minimum energy efficiency standard required of privately rented homes in England and Wales to the equivalent of Energy Performance Certificate (EPC) C by 2030.
Currently, properties need to have an EPC rating of E or above to be privately rented out and less than half of properties in England have an EPC rating of C or above. As a result, these proposed regulations would have a significant impact on both tenants and landlords.
We believe that increasing the required standard of privately rented homes to an EPC C is needed to help lift households out of fuel poverty, improve health and drive progress towards national climate goals. Here we set out the need to improve energy efficiency in private rental sector homes, and what the Nationwide Foundation is calling for in our response to the government’s consultation.
Warmer homes equal better health
Everyone deserves to have a home that is warm and safe, but cold, damp or mouldy conditions are contributing to serious health problems amongst tenants. Cold homes can have a significant impact on a child’s development, and they can have particularly detrimental effects, for the vulnerable, ill or elderly, especially if they spend most of their time at home.
Beyond physical illness, poor quality homes and high energy costs have an impact on mental wellbeing. There is a high corelation between fuel poverty and mental health issues, linked to the stress that high bills place on people, and the knock-on effect that cold conditions can have on rest and sleep.
Better health is not just valuable for individuals, but for society as a whole. A healthier society equates to a healthier workforce, which reduces welfare costs and means people are able to contribute more to our economy and society. If we want to have a healthier country, improving the energy efficiency of our homes needs to be part of the solution.
More energy efficient homes are key to meeting net zero
As well as being good for the people that live in them, energy efficient homes are also key to making progress on our environmental goals. Homes currently make up 16% of total greenhouse gas emissions in the UK[1]. To meet the government’s net zero target, the emissions from homes will need to be close to eliminated by 2050.
The key features of an energy efficient home include good insulation, double or triple glazed windows and draught proofing, keeping the heat in and the cold out and making it affordable to heat the home. In an energy efficient home, hot water and heating systems are powered by low-carbon options, such as heat pumps, rather than through electric and carbon-intensive systems.
We should be striving to see everyone across the country have access to an energy efficient home. We need to see the overall standards of property in the UK increase and for the environmental impact of poor homes to decrease.
The Government’s new proposals
The proposed regulations would require landlords to invest money into making adaptions to improve the energy performance of their property. The government has proposed a cap of £15,000 that landlords would be required to spend to bring the property up to the EPC C rating.
What is the Nationwide Foundation calling for?
At the Nationwide Foundation, we are broadly in favour of the proposals put forward in this consultation: privately rented homes should meet a minimum standard of EPC C, to help lift households out of fuel poverty, improve health and meet climate goals.
However, we also recognise the strain this could place on landlords if a realistic deadline is not put in place. We believe the proposed deadline of 2028 for new tenancies and 2030 for existing tenancies is a fair timeline for both tenants and landlords. However the government has a duty to ensure awareness has been raised for these regulations with ample time for landlords to take action.
To ensure that the new regulations are effective, we have also urged the government to consider implementing the following measures:
- Compliance and enforcement – introducing policies that would give local authorities the resources and training to enforce the new regulations.
- Recognising the value of good landlords – encouraging local authorities to promote best practice by highlighting examples of proactive landlords who have taken steps to improve their properties while mitigating disruption to their tenants.
- Mitigating disruption to tenants – placing a responsibility onto landlords to mitigate the impact of renovations and installations for their tenants, particularly those who are elderly or vulnerable.
- Preventing risk of eviction – 32,287 households in England were served with a section 21 eviction notice last year[2]. Regulation needs to work alongside provisions in the Renters Right Bill, particularly Section 21 reform, to ensure eviction notices cannot be served as a result of energy performance related improvements.
- Preventing risk of increased rent – average UK monthly rent increased by 7.7% in the 12 months leading up to March 2025. There is a risk that these new regulations incentivise landlords to raise rents even further. The government should take specific steps to limit the risk of unfair rent increases as a result of property improvements.
- Awareness raising campaigns – For the changes to EPC to be effective, both landlords and tenants must be aware of these changes.
If done right, the new energy efficiency regulations will improve the quality of privately rented homes and make an important contribution to meeting climate goals.
The consultation can be accessed here and the deadline for responses is 2 May.
[1] Final UK greenhouse gas emissions national statistics: 1990 to 2021 – GOV.UK
[2] Over 32,000 households in England served with a no-fault eviction last year | Crisis | Together we will end homelessness