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Two steps forward, one step back: Sunak scraps energy efficiency housing targets

Yesterday the UK Prime Minister revealed watered down plans to tackle the climate emergency including axing commitments to provide energy efficient homes.

Previously, Prime Minister Rishi Sunak, had targets to ensure properties covered by a new tenancy agreement in England had an EPC rating of C or above by 2025 and that all rental homes would meet the standard from 2028.

However, in an unexpected turn of events, Mr Sunak announced yesterday that ‘Under current plans, some property owners would have been forced to make expensive upgrades in just two years’ time.

‘That’s just wrong. So those plans will be scrapped and while we will continue to subsidise energy efficiency, we’ll never force any household to do it.’

News of this announcement has provoked mixed responses. As it stands households are one of the main contributors of greenhouse gases, accounting for 26% of total emissions in the UK, on a residency basis. According to the Office of National Statistics (ONS), Northern Ireland had the highest domestic emissions per capita and London the highest per kilometre.

‘The U-turn on green pledges feels significant for Sunak and his party,’ said Paresh raja, CEO of Market Financial Solutions. ‘It’ll create a furore that will last for some time.’

She added: ‘Looking specifically to the scrapping of the impending EPC regulations, we have to acknowledge what a complex issue this is. Many landlords will breathe a sigh of relief that there is no hard deadline for them to upgrade D-or-below related properties. Tenants may also benefit – rental prices might have risen in order to cover the costs of landlords upgrading their properties.

‘However, many landlords will have already improved the energy efficiency of their properties at great expense, so today’s announcement may trigger some frustration. Moreover, the next general election could result in the winning party reintroducing new EPC rules anyway, so the decision brings further uncertainty into a property market that would benefit from greater stability. Meanwhile, there are some renters who will worry about living in properties with poor energy efficiency – their bills this winter will reflect that.

‘The shift towards a greener property market is to be welcomed and encouraged. Today’s announcement will offer some relief to landlords in the short-term, but the long-term goal – as in every industry – must be to work together towards a more sustainable future. Ultimately, greater clarity around long-term reforms is required within the property sector at this time.’

One example of a housing development organisation that is working to make properties more energy efficient is Sovereign. Last year the company published their Homes and Place Standard which outlined plans to make their homes as sustainable as possible.

Following this, earlier this year the organisation began working with their tenants to gage attitudes towards decarbonisation in which the majority of responses were for making their homes more environmentally friendly.

Ben Beadle, chief executive of the National Residential Landlords Association (NRLA), commented: ‘The NRLA wants to see all properties as energy efficient as possible. However, the uncertainty surrounding energy efficiency policy has been hugely damaging to the supply of rented properties.

‘Landlords are struggling to make investment decisions without a clear idea of the Government’s direction of travel.’

‘It is welcome that landlords will not be required to invest substantial sums of money during a cost-of-living crisis when many are themselves struggling financially. However, ministers need to use the space they are creating to develop a full plan that supports the rental market to make the energy efficiency improvements we all want to see.’

Image: Leon Neal/Getty Images News

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Emily Whitehouse
Writer and journalist for Newstart Magazine, Social Care Today and Air Quality News.

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