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 across different sectors, with deadlines ranging from 2025 to 2035, subject to affordability and feasibility exceptions.

Description

The bill establishes minimum Energy Performance Certificate (EPC) ratings for different building types:

• Domestic Premises: All domestic properties must achieve at least EPC Band C by 2035, unless impractical, cost-prohibitive (over £20,000), or if permission for works is refused.
• Privately Rented Properties: New tenancies must reach EPC Band C by December 2025; existing tenancies by December 2028 (subject to affordability exemptions).
• Mortgage Lenders: By December 2030, mortgage lenders must ensure their average domestic property portfolio achieves at least EPC Band C.
• Owner-Occupied Properties (Unmortgaged): The government will encourage improvements to reach EPC Band C by 2035, with similar exemptions to domestic properties.
• Social Housing: Social landlords must ensure a "significant amount" of their properties reach EPC Band C by 2035; regulations will define "significant amount".
• New Homes: All new homes built from January 2025 must meet a "zero carbon ready" standard, defined by future regulations.
• Rented Non-Domestic Buildings: All rented non-domestic buildings must achieve EPC Band B by 2030, unless technically infeasible or cost-prohibitive.

The Secretary of State has the power to make regulations defining terms like "practical," "cost-effective," and "affordable," and to add to or amend the exemptions.

Government Spending

The bill doesn't specify direct government spending figures. However, it will likely involve costs associated with implementing and enforcing regulations, as well as potential subsidies or support schemes to help property owners meet the new standards. The overall financial impact will depend on the details of future regulations and support programs.

Groups Affected

• Homeowners: Will face potential costs to upgrade their properties to meet EPC Band C standards by 2035 (with exemptions).
• Landlords (private and social): Will be required to improve the energy efficiency of their properties by specified deadlines, potentially incurring significant costs.
• Mortgage Lenders: Must meet the average EPC Band C target for their portfolios by 2030, potentially influencing lending practices and mortgage terms.
• Builders: Will need to adapt to the "zero carbon ready" standard for new homes from 2025.
• Tenants: May benefit from warmer, more energy-efficient homes, but may also experience higher rents in the short term.

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