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 sets deadlines for achieving specific Energy Performance Certificate (EPC) ratings and outlines exemptions based on practicality, cost, and affordability.

Description

The bill mandates that:

• Domestic Premises: All domestic properties should achieve at least EPC Band C by 2035, with exemptions for impracticality, unaffordability (costs exceeding £20,000), or refusal of permission for works.
• Privately Rented Properties: New tenancies must have an EPC Band C rating from December 31, 2025, and existing tenancies by December 31, 2028 (subject to practicality, cost, and affordability exemptions).
• Mortgage Lenders: Must ensure their average domestic property portfolio achieves at least EPC Band C by December 31, 2030. They may be required to provide data on property energy performance.
• Owner-Occupied Properties (Unmortgaged): The Secretary of State will encourage improvements to achieve EPC Band C by 2035, with exemptions for impracticality, cost, and affordability issues.
• Social Housing: Social landlords must ensure a "significant amount" (to be defined in regulations) of their properties reach EPC Band C by 2035.
• New Homes: All new homes built from January 1, 2025, must meet a "Future Homes Standard" defined as "zero carbon ready".
• Rented Non-Domestic Buildings: Must achieve EPC Band B by 2030, with exemptions for technical infeasibility and excessive cost. If an exemption applies, properties must still be improved to a higher EPC rating.

The Secretary of State will have the power to define terms like "practical," "cost-effective," and "affordable," and can issue regulations to enforce compliance.

Government Spending

The bill doesn't specify direct government spending figures. However, it's expected that the government may need to allocate funds for regulatory oversight, enforcement, and potentially incentives or support programs to help property owners meet the new standards. The overall financial impact will depend on the details of future regulations and support schemes.

Groups Affected

• Homeowners: May face costs to upgrade their properties to meet the EPC requirements; exemptions exist for high costs.
• Private Landlords: Will need to upgrade their properties to meet EPC standards, potentially impacting rental prices.
• Mortgage Lenders: Will need to monitor and potentially influence the energy efficiency of their mortgage portfolios.
• Social Housing Providers: Will need to invest in upgrading a significant portion of their housing stock.
• Builders: Will need to comply with the new "zero carbon ready" standard for new homes.
• Businesses renting non-domestic properties: Will be required to improve the energy efficiency of the property they rent.

Powered by nyModel