Energy Bill could have major impact on private rented sector
Some 2 million private rented sector homes could become illegal to let out under possible and likely amendments to the Energy Bill.
Motions put forward in the House of Lords would prevent landlords renting out properties with energy performance certificates (EPCs) with ratings lower than band E, potentially from 2016, and homes lower than band D from 2019.
The plans could still alter in later readings of the Bill, which is due to come into effect in October 2012.
The English Housing Survey Headline Report shows that there are 1.7m million private rented sector homes in EPC bands E, F and G, out of a total of 2.8m private rented homes.
Grainger plc, the UK's largest private residential landlord, managing 26,000 homes, said that the move could damage hopes to attract major institutional investors to the sector.
Similar enforcements are not planned for the UK's 15.6m home owners and 3.9m social landlord properties.
British Property Federation Director of Policy Ian Fletcher said: "A host of technical and financial details must be addressed and any regulations Government contemplates must be enforceable if they are not to alienate the willing."
Several members of the Lords tabled a total of 20 amendments to the Bill on behalf of Green lobbying groups pushing for minimum EPC standards, particularly from private landlords.
Huw Jones at leading estate and letting agent Shaws Estate Agents said: "Private landlords need to be aware of these proposals and ensure that they take sensible action in regards improving the energy efficiency of the homes they let out. There are some tax allowance benefits available and a number of low cost measures that can help improve ratings. Many energy efficiency improvements also improve the capital value of the property too"
