Government proposals that would require new tenancies in the private rented sector to have an energy performance rating of C or above by 2025 need a rethink, according to the National Residential Landlords Association (NRLA).
The change would apply to exiting tenancies by 2028. Currently, all rental properties must achieve an E rating. The move could see landlords required to pay up to a cap of £10,000 to upgrade their properties to the new standard.
The NRLA says that this proposed cap is based on the “misguided assumption” that all private landlords are wealthy individuals with “unlimited sums of money”. But NRLA research has revealed that landlords make an average net annual income from property of less than £4,500.
The trade body is also calling for other measures, such as an end to VAT on energy efficiency adaptations and council tax discounts for green improvements to empty properties.
Ben Beadle, chief executive of the NRLA, said: “We all want to see as many energy-efficient rental properties in the sector as possible.
“Besides being good for tenants, improvements made to rental properties ensure they become more attractive to prospective tenants when being marketed by landlords and agents. However, the government’s proposals for the sector are not good enough.”
“Ministers need a smarter approach with a proper financial package if they are to ensure their ambitious objectives are to be met.”
In England, 58% of privately rented homes currently meet the C rating. However, a third of properties in the sector were built before 1919, making them more challenging to bring up to standard.
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