In a significant policy announcement, the Labour Party has introduced legislation set to prohibit landlords from renting homes that do not achieve at least a grade C on their Energy Performance Certificate (EPC) by 2030. This initiative is poised to impact millions of privately rented properties across the United Kingdom and is expected to bring extensive financial implications for property owners.
The proposed legislation will require landlords to invest up to £10,000 per property on upgrades such as insulation, solar panels, or heat pumps to comply with the new standards. Previously, the Conservative government had considered implementing similar measures by 2028 but ultimately decided against it due to the financial burden on landlords under former Prime Minister Rishi Sunak. Labour’s policy, however, grants an additional two years for compliance but is anticipated to reignite tensions within the property sector, with estimated compliance costs potentially reaching £25 billion.
Ed Miliband, Labour’s energy secretary, emphasised the social justice aspect of the policy. ‘We all know that the poorest people in our country often live in cold, draughty homes. It is a Tory outrage. This government will not tolerate this injustice, and we will end it,’ he stated. The policy will also extend to council housing, necessitating local authorities to enhance their housing stock, which could require substantial public investment.
The Labour Party is aware of potential pushback but remains committed to its environmental goals. This policy announcement coincides with Labour’s pledge to abolish no-fault evictions and introduce various pro-tenant reforms. Although housing campaigners have welcomed these measures, there is growing concern among landlords about their ability to remain viable in the rental market.
A consultation process is expected later this year to discuss implementing a cap on the amount landlords must spend on property upgrades, likely set around £10,000—mirroring previous proposals. Labour plans to support landlords through a £6 billion home insulation package, though specific details of this assistance remain unspecified. Currently, around 2.9 million privately rented homes fall below the grade C energy efficiency rating. Despite improvements in recent years, about half of the energy assessments conducted last year did not meet the proposed standard.
Michael Gove, the former housing secretary, had previously expressed reservations about accelerating energy efficiency requirements, cautioning that it would place significant financial pressure on landlords. ‘We’re asking too much too quickly,’ he remarked last year. In contrast, Ed Miliband will underline the significance of the measures for enhancing living conditions, stating, ‘Warmer homes, lower bills, over one million people lifted out of fuel poverty. That’s the difference a Labour government makes.’
This landmark policy by the Labour Party seeks to set a new standard for energy efficiency in rental properties, balancing social equity with environmental responsibility. While the initiative is anticipated to face resistance from property owners, its successful implementation could result in substantial improvements in living conditions for millions of residents and mark a critical step towards achieving the country’s green objectives.
