Landlords could face penalties up to £30,000 for having low EPC ratings
The government has introduced a new bill in parliament yesterday which will offer support to local authorities when it comes to enforcing Minimum Energy Efficiency Standards (MEES) in England and Wales’ domestic and commercial private rented sectors.
The government’s Energy Independence Bill (EIB) is said to “cut bills for households and put the power back in people’s hands with a fairer energy system”. It was introduced by DESNZ in the House of Commons on the 4th November, but is required to pass through a number of stages before it becomes law.
What it could mean for energy assessment, retrofit and the wider industry?
Stronger Enforcement of Domestic and Non-Domestic MEES
The Bill proposes stronger enforcement powers for energy efficiency standards across the domestic and non-domestic private rented sectors, including improved compliance information, property inspections and powers to restrict the marketing of non-compliant properties.
The maximum civil penalty for domestic MEES breaches would increase from £5,000 to £30,000. These measures will support the planned EPC C requirement for privately rented homes from 1st October 2030, which is expected to save households an average of £210 annually on energy bills in upgraded properties and help tackle fuel poverty.
The Warm Homes Agency and Delivery of Energy Schemes
The Bill would allow responsibility for managing energy schemes to move between government bodies and other organisations, supporting plans to establish the new Warm Homes Agency, first announced in the Government’s Warm Homes Plan.
Household Energy Affordability and Fuel Poverty
The Bill would allow the Government to introduce schemes to help households with their energy bills, including direct payments and reduced energy costs. It would also make it easier to identify households that qualify for support, including those who do not pay energy suppliers directly.
Financial Support for Energy Efficiency Improvements in Scotland
The Bill enables financial assistance, including grants and loans, for schemes improving building energy efficiency, reducing emissions from heating and tackling fuel poverty in Scotland, subject to Scottish Ministers’ consent.
Elmhurst’s Thoughts
Elmhurst supports proposals to strengthen the enforcement of Minimum Energy Efficiency Standards (MEES) across the private rented sector. Improving the energy efficiency of rented properties is essential to reducing energy bills, tackling fuel poverty and ensuring tenants have access to warmer, more comfortable homes and buildings.
Effective enforcement will be important in ensuring these standards achieve their intended outcomes. Penalties should act as a fair but meaningful deterrent, ensuring that the cost of non-compliance does not become a more attractive option than investing in energy efficiency improvements.
Stronger enforcement, alongside clear guidance and support for landlords, will be important in ensuring these requirements lead to real improvements in the energy efficiency of the UK’s rented housing stock.
