The Energy Secretary has announced plans to increase energy efficiency rules for social housing to reduce tenants’ fuel bills and meet climate targets.
Speaking at the Labor Party conference, Ed Miliband unveiled plans for all social homes in England to have an Energy Performance Certificate (EPC) rating of at least C by 2030.
The plan, due to be consulted later this year, expands on Labour’s existing commitment to apply the new rules to private landlords.
A third of social housing (approximately 1.2m) is currently rated Class D or below, requiring new insulation, windows and heating systems to bring it up to standard.
The Conservatives had planned to force all private landlords to meet standards by 2028, but this is Abandoned by Rishi Sunak last yearwho believes the added costs could push rents higher.
Labor pledged to reverse this in its election manifesto, while giving private landlords two years to achieve at least a C rating.
Now the party has announced that the requirement to reach grade C by 2030 will also apply to councils and housing associations in England.
Speaking at the Liverpool conference, Miliband said the scheme would lift a million people out of “fuel poverty” and show “the difference a Labor government can make”.
Currently, private properties in England and Wales need to be at least E-rated before they can be rented.
Landlords must pay for upgrades to reach this level, such as boiler replacements, improved insulation and double glazing, with costs capped at £3,500.
Retrofit requirements
The EPC system, introduced in 2007, rates properties according to their energy efficiency, with the most efficient properties rated A and the least energy efficient properties rated G.
Official statistics show that the social rented sector is generally more efficient, with around 70% of properties rated AC by 2022, compared with 44% of private rented properties.
But there are still around 1.2 million social properties in England below grade D, and a further 2.6 million private rented properties.
The National Housing Federation, which represents housing associations, has previously put the average cost of upgrading social homes to grade C at between £3,000 and £4,000.
Member relations chief Kevin Garvey said to meet Labour’s targets housing associations would need to double the current pace of retrofitting homes and “set out clear plans for homes that are difficult to decarbonise”.
“Housing associations need a commitment from the government to provide long-term funding to ensure they have the resources they need,” he added.
insulated funds
Labor has pledged £13.2 billion in grants and low-interest loans over the next five years to help meet a 2030 deadline to upgrade five million homes.
Although roughly double the total allocated by the previous Conservative government, this total Downsizing before the election It was originally planned to cost £60bn over 10 years.
According to The Times, Labor is expected to negotiate on capping landlord costs to around £10,000, the same level previously announced by the Conservatives for the 2028 deadline.
Property company Savills previously estimated that landlords would need to spend around £25bn to bring private properties up to standard, assuming a £10,000 cap, with the greatest cost being upgrading older homes.