Thank you for contacting me regarding the UK Government’s proposals concerning EPCs.
Whilst I acknowledge the importance of improving insulation and energy efficiency, I do not support the UK Labour Government’s plans to ban the letting of properties unless they attain an EPC rating of C or the proposed spending cap of £15,000. This top-down mandate risks pushing up rents and driving landlords out of the market altogether, and estimates suggest that the changes could cost landlords £21.8 billion collectively – which would trigger a 25% increase to rent prices if these costs were passed on to tenants.
The UK Labour Government proposals are a resurrection of a policy considered by the last UK Government, however the Conservatives rightly scrapped the plans in 2023 when it became apparent that the financial strain it would place on property owners would be unjustifiable and would risk triggering a significant rise in rent for customers of the businesses that survived the policy.
The establishment of minimum energy efficiency ratings for holiday let properties of an EPC rating of C will result in considerable consequences for those that fall short, with property owners facing fines as significant as £30,000 per breach for non-compliance and the risk of being banned from renting-out their properties entirely going forward.
It is estimated to cost between £6,000 and £10,000 on average to upgrade from an EPC rating of D to EPC C, with older properties set to cost considerably more due to insulation and heating inefficiencies.
My Welsh Conservative colleagues and I will continue to push for the Welsh Labour Government here in Wales to ensure these concerns are heard by their UK Labour colleagues and that Welsh properties are safeguarded from these financially devastating proposals.