Proposed £15,000 cost cap could force landlords to exit market
Propertymark – an industry body for property agents – has urged the UK government to implement upcoming energy efficiency rules for rental properties on an individual basis, warning that sweeping measures could place undue pressure on landlords and destabilise the rental market.
Responding to a government consultation on proposed changes to the energy efficiency regulations, the organisation highlighted feedback from 350 property professionals and roundtable discussions across England and Wales. The consultation, led by the Department for Energy Security and Net Zero (DESNZ), seeks to revise regulations governing how landlords improve the energy performance of rental homes and includes potential changes to the Energy Act 2011.
While Propertymark said it supports initiatives to improve the energy efficiency of housing stock, it stressed that targets must be feasible. The membership body argued that the government’s approach must reflect differences in property types and market values — particularly in the private rented sector, where many properties are older and of lower value.
The trade body expressed concern that the proposals could lead to major disruptions. Many landlords, it said, would face high costs under the plan to raise the maximum spend required before exemptions can be granted from £5,000 to £15,000 per property.
Citing feedback from a large agency in the West Midlands, Propertymark said the £15,000 threshold would likely push many landlords out of the market. Similarly, an agency in the South West noted that a significant number of properties would not meet EPC ‘C’ standards, potentially leading to mass withdrawals of stock from the rental sector.
“Propertymark wants to see more energy efficient homes, but the targets must be realistic and achievable,” reiterated Timothy Douglas (pictured), head of policy and campaigns at Propertymark. “We have long said that the UK government must do more to understand the finances of landlords and introduce measures that take into account the diverse nature of property types across England and Wales in the private rented sector.”
The government’s current proposal is to require new tenancies to meet EPC ‘C’ standards from 2028, with all existing tenancies to comply by 2030. Propertymark has recommended easing the implementation timeline to give landlords more time to spread upgrade costs and allow for workforce development in the energy retrofitting sector.
The organisation also called for financial support and incentives to help landlords begin making changes ahead of the deadlines, suggesting this would reduce pressure on the supply of qualified tradespeople.
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