ONS energy efficiency figures fuel fears over 2025 rental regulation

Posted on Friday, October 28, 2022

Private rental homes in England and Wales have a median energy efficiency rated in band D, the latest figures from the Office of National Statistics have revealed – prompting concern that future government EPC requirements could cause problems within the sector.

According to proposed legislation, from 2025 all newly rented properties will need an EPC rating of C or above (meaning an energy efficiency score of at least 69), while existing tenancies will have until 2028 to comply. Failure by landlords to provide a valid EPC could risk a £30,000 fine.

ONS figures relating to private rental accommodation in England up to March 2022 show the median energy rating only fell within band C for flats and maisonettes (with an average score of 69). Meanwhile, detached (61), semi-detached (63) and terraced (63) private rental homes all had median scores within band D.

In Wales, the private rental statistics show the median score for flats and maisonettes fell within band D (68), along with detached (57), semi-detached (63) and terraced (62).

The ONS figures show social rented dwellings had the highest median energy efficiency in England and Wales, with scores of 70 and 71 respectively – both equivalent to band C.

Lisa Martin, development director of consultancy TMA Club, said the ONS data provided evidence that “a minority of landlords” were “not only unprepared but unaware” of the risk to their business should the proposed changes come into effect.

“With approximately two-thirds of privately rented homes having an energy rating of D or below, around 3.2 million properties in England and Wales will require work to meet government targets,” Martin added.

Overall, the median energy efficiency score for homes in England and Wales for records up to March 2022 was 67 and 65 respectively. Within England, Yorkshire and The Humber had the lowest average score (65), while London and the South East had the highest median energy efficiency, with a score of 68 (albeit still falling within band D).

In both countries, four in five dwellings used mains gas as a main fuel source for central heating.

Via @PropertyIndustryEye