By 2030, landlords will not be allowed to let properties that do not meet minimum energy efficiency standards, according to Ed Miliband, Labour’s energy secretary. He will announce the policy at the Labor Party conference on Monday.
Under the proposed legislation, all rental properties must achieve at least a C class on their Energy Performance Certificate (EPC), a measure that will impact millions of private rental properties. Landlords could face costs of up to £10,000 per property for upgrades such as insulation, solar panels or heat pumps to meet the new standards.
The Conservatives originally planned to introduce similar measures by 2028, but scrapped the deadline under former Prime Minister Rishi Sunak, citing the financial burden on landlords. Labour’s reinstated policy gives a further two years to comply, but is expected to reignite tensions with property owners, with estimated costs totaling around £25 billion.
“We all know that the poorest people in our country often live in cold, draughty houses,” Miliband is expected to say. “It’s a Tory outrage. This government will not tolerate this injustice, and we will put an end to it.”
The new regulations will also apply to social housing, requiring local authorities to upgrade their housing stock – a move that could entail significant public expenditure. Labor sources indicate they are prepared to face potential opposition to achieve their green goals.
The announcement comes amid Labor’s pledge to end no-fault evictions and implement a series of pro-renter reforms. While these measures have been welcomed by housing activists, they have raised concerns among landlords about the viability of remaining in the rental market.
A consultation is expected later this year and is likely to include a cap on the amount landlords must spend on property improvements, expected to be around £10,000 – in line with previous proposals. Landlords are eligible for support from Labour’s £6 billion home insulation package, although specific support details have yet to be outlined.
Around 2.9 million private rental properties currently have an energy efficiency rating below Class C. Despite improvements in recent years, around half of rental properties’ energy ratings last year did not meet the proposed standard.
Michael Gove, the previous Housing Secretary, had expressed reservations about accelerating energy efficiency requirements, saying it would put significant financial pressure on landlords. “We are asking for too much too soon,” he said last year.
Ed Miliband will emphasize the importance of the measures in improving living conditions: “Warmer homes, lower bills, over a million people lifted out of fuel poverty. That is the difference a Labor government makes.”