Lack of council action risks government plans for greater energy-efficiency in the PRS

A lack of Energy Performance Certificate enforcement in the private rented sector by councils across England undermines the government’s push for greater energy efficiency, according to industry tech provider Reapit.

Related topics:  EPC,  Net Zero,  Councils
Property | Reporter
3rd January 2025
Neil Cobbold 725

In recent months, Reapit sent Freedom of Information requests to some of the country's biggest councils, including Liverpool, Manchester, Brighton, Birmingham, Leeds and Bristol, asking how many rogue landlords were fined for not complying with current EPC rules. Across all councils surveyed, only 147 fines in total were issued and only by Liverpool, Bristol and Newham.

Wider issues uncovered

Councils were also asked how many PRS properties are currently exempt from Minimum Energy Efficiency Regulations. Across the councils that provided data, only 325 exempt properties were known, with the majority of councils unable to say how many were in their area.

The funding behind enforcement also seems to be lacking, with one council admitting to operating “an intelligence-led approach,” relying on complaints rather than proactive investigations. As a result, local Trading Standards is “not proactively undertaking exercises in relation to this issue.”

Good landlords let down

Commenting on the lack of enforcement across English councils, Reapit Commercial Director Dr Neil Cobbold (pictured) said: “Millions of landlords across the UK provide high-quality properties, but we all know there are a small minority of rogue landlords who undermine the sector.

“By failing to investigate bad landlords who can’t provide a simple valid EPC certificate when a property is rented, councils are sending the wrong message to landlords who abide by the law. The inability to provide basic paperwork can point to wider issues with the property. Lack of enforcement means unscrupulous landlords can continue to offer substandard properties without fear of getting caught.”

Risk to Miliband’s push for net zero

“Widespread failure to enforce current EPC regulations also brings into question the government’s EPC C deadline, announced by the Secretary of State for Energy and Climate Change Ed Miliband earlier this year,” explained Cobbold. “We estimate that over the next five years, landlords are being asked to collectively pay £24bn to upgrade their properties to an EPC C by 2030. But what is the incentive for landlords when the risk of being caught is so low and the cost so very high?”

No excuse for more licensing schemes

“Despite the lack of enforcement, the last thing agents and landlords need are more selective licensing schemes. It may appear to be an attractive path for cash-strapped local government, especially as the schemes no longer need confirmation from the Secretary of State before implementation, but adding more costs to landlords will simply show in higher tenant rents.

“It's especially important not to go down this road at a time when the government is introducing both a Private Rented Sector Database, which will aid enforcement, and attempting a wholesale reorganisation of local government.

“The rules and regulations around minimum energy standards and EPCs in the PRS are clear – local authorities simply need to enforce them better or risk undermining the government’s energy-efficiency drive.”

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