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Antony Antoniou – Luxury Property Expert

Landlords Granted Extra Time for Energy Efficiency Upgrades

Landlords Granted Extra Time for Energy Efficiency Upgrades

In a bid to ease the burden of net-zero rules on landlords, Michael Gove, the Levelling Up Secretary, has announced a plan to provide more time for landlords to enhance the energy efficiency of their rental properties.

**Postponement of EPC C Rating Requirement**

The initial deadline for all rental homes in England to achieve an environmental rating of EPC C was set for April 1, 2025, for new leases and April 1, 2028, for existing leases. However, due to the challenges faced by the industry in meeting these targets, the government plans to delay the implementation.

Presently, approximately 2.4 million rental properties in England have an EPC rating below C, making it difficult to meet the requirements on time.

**Reconsidering the Heat Pump Mandate**

The proposal to replace gas boilers with heat pumps in new homes by 2025 is also up for review. The government is taking into account concerns about the potential impact on households and affordability before finalizing the decision.

**Tax on Packaging Delayed**

In addition to the changes in the rental sector, the government has postponed the introduction of a new tax on packaging by one year. This decision was made to alleviate concerns about the potential increase in household shopping bills due to the levy.

**Reevaluating Net Zero Goals**

Following a surprise by-election win last week, there has been a reassessment of some measures aimed at achieving the UK’s net-zero carbon emissions target by 2050. The government is considering potential revisions to balance environmental objectives with economic realities.

**Gove’s Commitment to Supporting Landlords**

Michael Gove expressed his concerns about the mounting pressure on landlords to meet the environmental targets during a BBC Radio Four interview. He emphasized the need to provide landlords with more breathing space, considering the challenges they face in upgrading their properties.

**Government’s Consideration of Stakeholder Views**

A government official familiar with the matter confirmed that the concerns raised by the National Landlords Association and other stakeholders have been taken into account. While the government remains committed to its environmental goals, it recognizes the need not to overburden landlords facing cost-of-living pressures.

**The Future of the EPC System**

Ministers are also exploring the possibility of eventually phasing out the EPC system, as some experts view it as an inefficient measure of a home’s environmental friendliness. Currently, over 2.4 million privately rented homes in England have an EPC rating below C, representing 56 percent of all privately rented properties.

**Regional Impact and Clarity on the Delay**

It’s important to note that the changes only apply to renters in England, as policies in Scotland, Wales, and Northern Ireland are determined by their respective administrations. However, the exact duration of the delay is yet to be clarified. The response to a consultation on the approach is expected later this year, providing further clarity on the matter.

**Review of Gas Boiler Ban**

During various interviews, Michael Gove suggested that the government is open to reviewing the 2025 ban on gas boilers for new homes. He acknowledged the cost implications of transitioning to heat pumps and highlighted the government’s commitment to finding ways to mitigate the impact on individuals.

**Balancing Environmental Objectives with Realities**

The recent by-election results have seemingly influenced the government’s approach to its net-zero push. There appears to be a firmer stance on striking a balance between environmental objectives and economic considerations.

**Delaying the Extended Producer Responsibility for Packaging**

The government has also decided to postpone the rollout of the Extended Producer Responsibility for packaging by one year. This decision comes after concerns about the potential impact on household bills due to the tax.

As the UK continues on its journey towards a net-zero future, policymakers must carefully consider the implications of their decisions. The government’s willingness to listen to stakeholders and reassess certain measures reflects a commitment to finding sustainable and pragmatic solutions on the path to a greener future.

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