Social rented homes across the UK will have to reach minimum energy standards under new plans announced by energy secretary Ed Miliband at the Labour Party conference this week.
While private homes need to have an EPC of E to be rented out, there is currently no standard for social rented homes.
Miliband wants to launch a consultation on plans that will see both privately rented and social rented homes meet an EPC of C by 2030.
He said the move would lift 1m households out of fuel poverty.
“Families across the country are continuing to grapple with the consequences of high energy bills amid a cost-of-living crisis – with too many tenants exposed to a harsh reality of cold, draughty home and expensive bills,” he said. “Government intervention is now well overdue to transform living standards and deliver the safety and security of warmer, cheaper homes that are free of damp and mould.”
The government also announced a new Warm Homes: Local Grant to help low-income homeowners and private tenants with energy performance upgrades and cleaner heating, and confirmed the continuation of the Public Sector Decarbonisation Scheme, as well as the Warm Homes: Social Housing Fund, which replaces the Social Housing Decarbonisation Fund, to support social housing providers and tenants.
The UK Green Building Council – which represents housebuilders, banks, social housing providers, local councils, developers, estates and engineering companies and universities – called Miliband’s pledge “huge”.
Deputy chief executive Simon McWhirter said: “We have waited years for a government announcement like this to tackle Britain’s cold, draughty homes. This will have won Ed Miliband a million new friends – all those people who will be lifted out of fuel poverty; and tens of thousands more people who can benefit in a boosted jobs market from this pump-priming for skilled insulation fitters, heat pump and solar panel installers, manufacturers and designers. Every community will feel the benefit of the investment it will unlock, and we can’t hit our climate goals without it.“
McWhirter warned that government would “come under pressure from some landlords to water this down” but added that responsible landlords would “see this as an opportunity to do the right thing, make it more likely that tenants can afford to pay their rent and raise the value of their investment”.
There are currently around 19m homes rated EPC D or lower in the UK.
Last week, EG revealed that the government was considering potentially bringing EPC rules for commercial assets in line with those for residential property. Under current legislation, commercial properties will need to have an EPC of C by 2028 and B by 2030 to be sold or let.
According to EG Radius analysis, based on current EPC ratings, the existing rules on EPCs in the commercial sector could see more than £8bn of rent put at risk, with 413m sq ft of space failing to meet the EPC B standard.
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