Some acts of parliament depart a legacy; the National Health Service Act 1946, for instance, gave us free healthcare at the level of use.
Others, like the Local Government Finance Act 1988 — sometimes called the Poll Tax Act — are remembered for the chaos they unleashed.
Then there are the forgotten ones that wither away earlier than they’ll make it onto the statute e-book.
The Minimum Energy Performance of Buildings (No.2) Bill (MEPBB) — the Conservatives’ try to make personal rented properties greener — sits in that final class. As a non-public members’ invoice, it by no means had full authorities backing. So it got here as no shock when it was unceremoniously dropped 18 months in the past.
After years of confusion, landlords face uncertainty
Many thought that was the finish of it. But I all the time suspected that Labour would decide up the baton, which it has now carried out. UK properties are the oldest in Europe and housing accounts for roughly 16% of our greenhouse fuel emissions, based on authorities figures.
That’s not the concern, although. I help the purpose however, as with the MEPBB, it’s the execution that worries me.
Labour’s plans diverge from the Tories’ in a number of methods, however one proposal units alarm bells ringing. That’s the substitute of the Standard Assessment Procedure, which underpins as we speak’s energy efficiency certificates (EPC) rankings, with a brand new Home Energy Model (HEM) to enhance accuracy.
On the floor, it seems like a technical replace. But it has the potential to trigger issues and delays for landlords.
Compliance spine
EPCs started as easy information sheets to offer patrons and renters an thought of working prices. Now they’re the spine of compliance. You can’t hire a property if it doesn’t have one; lenders usually require one earlier than agreeing to lend; and a poor score can drag down the worth of your property by as much as 19.6%, based on Knight Frank.
The EPC just isn’t excellent — in reality, we have lengthy argued it’s flawed — however the system is not less than acquainted. Landlords know what’s anticipated of them and may plan. That issues whenever you’re asking them to spend what Knight Frank expects to be in the area of a mixed £21.6bn — or greater than £8,100 every — to improve their properties, and inside a really tight timeframe.
This is one other well-meaning coverage that raises extra questions than solutions
The HEM, in contrast, is a black field. The authorities says it’s “below improvement”, with a session “anticipated” this 12 months. But the rollout is due in the second half of 2026, giving landlords little time to arrange for and adjust to a framework that doesn’t but exist.
Millions of properties will want upgrading to fulfill the new necessities. This raises huge questions on capability.
For starters, we’ll want extra energy assessors. Estimates counsel there are at present 15,000 assessors in the UK. With an estimated 2.6 million properties in the personal rented sector (PRS) that have an EPC score of D or beneath, they’ll have to examine a further 167 properties every. That’s on prime of their present backlog and it doesn’t embody reassessments.
Clearly, we’ll want extra assessors. But that might be troublesome given the comparatively low pay. I’ve seen job adverts in the Southeast providing simply £27,000–£28,000 for what’s expert, technical work. To make issues worse, the assessors already in place will have to be retrained to evaluate properties below the new HEM.
It seems like a technical replace. But it has the potential to trigger issues and delays for landlords
If landlords can’t entry assessors or meet the necessities by means of no fault of their very own, what then? Will they be fined? Lose tenants? Be denied finance?
Thankfully, there’s one saving grace. Under the present proposals, any property that secures an EPC of C earlier than the HEM is launched might be thought of compliant for 10 years. That’s a robust incentive to behave now, whereas the standards are clear.
But not everybody will have the ability to act now. Some landlords might want to refinance to fund the enhancements however might be locked into fixed-rate offers. Those who delay danger a mad scramble later, not simply for assessors however for the expert tradespeople wanted to hold out the upgrades. These individuals are additionally in brief provide, so the worth of the work will rise. Things may get messy.
The EPC just isn’t excellent however the system is not less than acquainted. Landlords know what’s anticipated of them and may plan
Labour’s try to make the PRS extra energy environment friendly is one other well-meaning coverage that raises extra questions than solutions. After years of confusion, landlords face months of uncertainty. And, as soon as the guidelines turn into clear, they’ll have little time to behave.
If the authorities desires this to succeed, it wants to offer the specifics — and quick.
David Whittaker is chief govt of Keystone Property Finance
This article featured in the July/August 2025 version of Mortgage Strategy.
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