Energy efficiency rules are changing: what should landlords do now?

On 4th November, a new bill, the Energy Independence Bill, was introduced into Parliament.

The long title on the bill’s Parliament website page describes it as

A Bill to make provision about the regulation of the energy sector; about energy schemes; about heat networks; about the Independent System Operator and Planner; about the North Sea Transition Authority and activities relating to petroleum; about the Mining Remediation Authority and coal-mining operations; about hydrogen power; about employment rights for offshore workers; about the energy efficiency of properties in the private rented sector; about radioactive waste; about fees relating to the assessment and certification of fuels and fireplaces; and for connected purposes.

It also introduces new rules for landlords. Or rather, it gives power to make regulations.

So what is changing?

The relevant section, clause 173, is rather short:

Energy efficiency in the private rented sector in England and Wales
Schedule 9 contains amendments to Chapter 2 of Part 1 of the Energy Act 2011 (which confers power to make energy efficiency regulations in relation to the private rented sector in England and Wales).

The things to look at are Schedule 9 and paragraphs 665–674 of the Explanatory Notes. So what do they say?

The Schedule, Schedule 9, amends the Energy Act 2011 to include measures to strengthen the enforcement framework for minimum energy efficiency standards in the private rented sector.

It will extend the powers to make regulations in the following ways.

• It allows regulations to cover properties occupied under a licence, potentially including short-term holiday lets. However, the government says it currently has no plans to exercise this power.
• So far as HMOs are concerned, the Bill makes it clear that “property” includes part of a property. It would allow regulations to set out how the minimum energy-efficiency standards apply to HMOs, including where rooms are let separately.
• Tenants in qualifying properties already have a right to ask for consent to carry out certain energy-efficiency improvements. The Bill would also allow the government to make specific regulations about how the rules on those requests apply to HMOs.
• It allows assessments carried out for the purpose of demonstrating compliance to be treated in some circumstances as a ‘relevant energy efficiency improvement’ itself.
• It provides for inspection of non-domestic properties to ensure that they are compliant – but this will not apply to residential lets
• It allows regulations to provide for a maximum civil penalty of £30,000 instead of £5,000.
• It will enable regulations prohibiting landlords and agents from marketing a property to let until the landlord has complied with the minimum energy-efficiency requirements.
• It will provide for compliance information to be kept, probably in a new database
• It will provide for organisations other than Local Authorities to be enforcement bodies
• It will generally update the definitions in regulations

Clause 185(4)(z1) provides that clause 173 and Schedule 9 will come into force two months after the bill has received Royal Assent. But this does not mean all the rules will come into force then – just the powers to create the necessary regulations.

What do landlords need to do?

First things first

Find your existing EPC and check what it recommends and what you have already done.

If your property already has an EPC rating of C or above, check whether the proposed transitional arrangements will cover it before planning further improvements.

Not every improvement will count towards the proposed £10,000 cap. For example, it looks as if expenditure on installing more efficient gas boilers may not qualify, as gas is a fossil fuel, so check before committing to expensive work. The fact that certain work may have been recommended in an old EPC does not mean it will be compliant with the new rules.

Plan out what you are going to do

Make a list of all the improvements you will need to carry out. Get estimates of the cost from relevant tradespeople and if possible, get some things done now.

Remember that once the new rules come into force it may be difficult to secure tradespeople to do this work as there will be a huge demand.

Keep all evidence of work done

So this means invoices, specifications, installation certificates and photographs.

In particular, if the work you are doing will not be visible – for example, insulation which will be covered up, make sure you have full records and photographs of the completed work before it is covered up. Read this blog post to see what can happen.

And finally

The associated factsheet to the bill links it to the government’s proposal to require private rented homes to meet EPC C or equivalent by 1 October 2030.

The government’s announced policy includes a £10,000 investment cap, with qualifying expenditure from 1 October 2025 counting towards it. So make sure you can prove what work has been done and how much it cost. The detailed rules still need to be put into legislation though, so watch out for further announcements.

Local Authorities will not only have greater powers to fine landlords but (as already provided for in the Renters Rights Act 2025) have a legal obligation to enforce compliance. If they don’t, no doubt tenants’ organisations will be on the case, issuing judicial review proceedings.

So it is important that landlords start planning for this now.

2030 is only four years away, and building work takes time to plan and complete. Don’t delay!