Minimum Energy Efficiency Standards: Cost Caps for Landlords

Lord Jamieson Excerpts

Monday 15th September 2025 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

This is a very important question for those tenants who find themselves on heat networks. The noble Baroness is right to point to the fact that, while some of them have been maintained well and looked after, for others that is not so much so. We have allocated £1.29 billion of funding from the warm homes plan specifically to support energy efficiency improvements in social homes as part of wave 3 of the warm homes social housing fund. We are generally very much in favour of heat networks, and I hope that those organisations that operate heat networks will approach the department for that funding. The funding will deliver support to 144 projects across England. I hope that will provide some financial support for those organisations facing that dilemma.

[Lord Jamieson (Con)]

My Lords, we agree that it is desirable to have energy-efficient homes but for many older and, in particular, listed homes this can be difficult. The Government are lifting the cap for private rental landlords to meet the EPC C rating by 2030 from £3,500 to £15,000. Already, this is a potentially significant burden on landlords. Many might consider it no longer worthwhile and seek to sell, meaning fewer desperately needed rental homes. Given this change, what assurance can the Minister give to landlords that the cap will not be increased further and that the requirement will not go beyond the EPC C rating?

[Baroness Taylor of Stevenage (Lab)]

I hope I made it clear in my earlier answer that no decisions have been taken yet. We will report on the outcome of the consultation. We consulted on a number of proposals to manage the cost burden, including a cap on the maximum investment required per property, which I think is what the noble Lord was getting at, and the other exemptions that may not be feasible or appropriate, including heritage buildings, for which I understand it might be difficult in those circumstances. We have a number of avenues of support for landlords to improve their properties. The boiler upgrade scheme offers £7,500 off the cost of a heat pump. There is the warm homes local grant, which will fund measures such as insulation and solar panels for eligible low-income households. We are doing what we can to support private landlords with a package of measures that will help them to introduce safe and warm homes.