Parliamentary.ai

Overview

This bill aims to significantly improve the energy efficiency of buildings in England and Wales by setting minimum energy performance standards for various property types. It sets targets for achieving higher Energy Performance Certificate (EPC) ratings by specific deadlines, with exemptions for cases where improvements are impractical, too costly, or unaffordable.

Description

The bill mandates improvements across different building sectors. For domestic properties, all homes must achieve at least an EPC Band C rating by 2035, subject to exemptions for impractical, unaffordable, or excessively costly upgrades (over £20,000). Privately rented properties face stricter deadlines: new tenancies must reach EPC Band C by December 2025, and existing tenancies by December 2028, with affordability exemptions available. Mortgage lenders must ensure their domestic property portfolios average at least an EPC Band C rating by December 2030. Owner-occupied properties (not mortgaged) are encouraged to improve their energy performance to Band C by 2035, with similar exemptions as domestic properties. Social housing must see a "significant amount" of their properties reach Band C by 2035, with regulations to define what constitutes "significant". Finally, all new homes built from January 2025 must meet a "zero-carbon ready" standard, details of which will be defined by regulations. Rented non-domestic buildings need to achieve an EPC Band B rating by 2030, with exemptions for technical infeasibility or cost-ineffectiveness.

Government Spending

The bill does not explicitly state a direct government spending figure. However, the implementation of the bill's requirements is likely to involve significant government spending on regulatory frameworks, enforcement, and potentially support schemes for building upgrades. Further, the bill may indirectly impact government spending through reduced energy consumption and subsequent lower welfare costs.

Groups Affected

• Homeowners: Will face potential costs and requirements for upgrading their properties to meet EPC Band C standards by 2035, with exemptions.
• Private Landlords: Will be required to upgrade their properties to meet EPC Band C standards by specific deadlines, with affordability exemptions.
• Mortgage Lenders: Will need to monitor and improve the energy performance of properties in their portfolios.
• Social Landlords: Will need to upgrade a significant portion of their properties to EPC Band C.
• Builders and Contractors: Will potentially see increased demand for energy efficiency upgrades and new home construction that conforms to zero-carbon standards.
• Tenants: May experience improvements in the energy efficiency of their homes, leading to lower energy bills.