Reports: EPC regulation reforms could see fines for landlords skyrocket
The Government are considering raising the fine landlords face for not complying with energy efficiency regulation
Private landlords that fail to improve the energy efficiency of the properties they let out could face fines of up £15,000, according to reports that suggest the government is considering reforms to its Energy Performance Certificates (EPC) regulations in a bid to accelerate domestic emissions reductions .
Over the weekend, The Times reported that expected changes to energy efficiency rules, requiring privately rented homes to have a minimum energy efficiency rating of Band C, up from Band E, could be backed up by fines of up to £15,000 for non-compliance.
Currently, landlords face fines of up to £5,000 per property that breaches the regulation. But critics have long argued that fines that are potentially lower than the cost of upgrade work to improve the efficiency of a property have afiled to prove effective at driving many landlords to invest in their properties.
A spokesperson for the Department for Business, Energy, and Industrial Strategy (BEIS) told BusinessGreen that “the existing maximum fine level of £5,000 is unlikely to act as an effective deterrent to non-compliance” and as such the government has sought views on raising the fine.
“The vast majority of landlords are making improvements to their properties to comply with regulations, however there are a small minority that don’t,” they added. “We have therefore consulted on raising the maximum fine level for non-compliance and will publish our response in due course.”
However, there is some dispute as to the level to which the fine is likely to be raised. Another Government spokesperson told BusinessGreen that they do not “recognise” the figures in The Times report. “We don’t recognise these figures,” they said. “We have a comprehensive action plan in place to drive down emissions, including our commitment to improving as many private rental homes as possible to EPC band C by 2030 where practical, affordable and cost effective.”
The new regulations could see landlords pay an average of £4,700 per home to make energy efficiency improvements, with the government considering setting a cap for the maximum landlords would be required to spend at £10,000. The Times estimated the cost to the whole sector could reach £13bn.
The government is expected to publish the response to its consultation before the end of the year, which is also set to feature information on how landlords can meet the new requirements.
The government has announced it is spending £1.3bn this year to help households install energy efficiency measures, including providing local authorities with grants for improving the efficiency of low-income homes.
The government is also considering a range of measures to make owner-occupied homes more energy efficient, including requiring mortgage lenders to disclose the energy efficiency of the homes they lend money against and set targets to improve the insulation of the homes in their portfolio.
Think tank Onward has estimated the costs of installing high grade insulation and a low energy boiler could reach £16,700 per household in new analysis which looks at UK voters’ support for climate policies. The study found that voters support for policies dramatically dropped when they found out the cost, with the three costliest policies relating to household renovations for energy efficiency, confirming that such measures could prove controversial.
However, environmental campaigners maintain that enhancing domestic energy efficiency is essential to delivering on the UK’s emissions targets and would deliver multiple long-term jobs, health, and cost saving benefits.
