Parliamentary.ai

Overview

This bill aims to improve the energy efficiency of buildings in England and Wales by setting minimum energy performance standards for various property types. It mandates improvements to reach specific Energy Performance Certificate (EPC) ratings by certain deadlines, with exemptions for impractical, unaffordable, or technically infeasible upgrades.

Description

The Minimum Energy Performance of Buildings Bill sets energy efficiency targets for different building types:

• Domestic Premises (All Properties): Aim for EPC Band C by 2033, subject to exemptions for refusal of permission, technical infeasibility, or costs exceeding £20,000. The Secretary of State will define "practical," "cost-effective," and "affordable."
• Privately Rented Properties: Must reach EPC Band C by December 31, 2028, with affordability exemptions determined by the Secretary of State.
• Mortgage Lenders: Average EPC Band C across their domestic portfolios by December 31, 2030.
• Owner-Occupied Properties (Unmortgaged): Must achieve EPC Band C by 2033, with exemptions for impractical, unaffordable, or cost-ineffective improvements.
• Social Housing: A "significant amount" of social housing must reach EPC Band C by 2030; the Secretary of State will define "significant amount."
• New Homes: All new homes built from January 1, 2025, must meet a "zero carbon ready" standard, to be defined by the Secretary of State.
• Rented Non-Domestic Buildings: Must achieve EPC Band B by 2030, with exemptions for technical infeasibility or cost-ineffectiveness. Improvements are required up to a level where exemptions no longer apply.
• Fuel Poverty: The Secretary of State must take reasonable steps to ensure homes occupied by those in fuel poverty reach EPC Band C by 2030, with exemptions for impracticality, cost-ineffectiveness, or refusal of permission.

Government Spending

The bill doesn't specify direct government spending figures. However, it's likely to necessitate government funding for potential grants, subsidies, or other support programs to assist homeowners and landlords in meeting the new energy efficiency standards. The exact cost will depend on the details of these support programs and the number of properties requiring upgrades.

Groups Affected

• Homeowners: Will need to upgrade their properties to meet EPC standards, potentially incurring costs. Support may be available for some.
• Landlords: Will need to make improvements to their rental properties to comply with the regulations. Affordability exemptions may apply.
• Mortgage Lenders: Must ensure their mortgage portfolios meet the average EPC Band C requirement.
• Social Housing Providers: Will need to upgrade a significant portion of their properties.
• Construction Industry: May experience increased demand for energy-efficient building materials and services.
• People in Fuel Poverty: The bill aims to improve their homes' energy efficiency, potentially leading to lower energy bills.