A report on climate change issued by the Bank of England’s Prudential Regulation Authority has hinted that tighter environmental regulations may be on the way for landlords and owner occupiers.
As covered by Lucy Barrett in Mortgage Strategy, from 1 April new Minimum Energy Efficiency Standards came into force, stating that landlords can only rent properties in England and Wales that achieve a minimum Energy Performance Certificate rating of E.
By 1 April 2023, this will be extended to all existing leases, “with significant penalties for non-compliance,” according to the PRA.
The PRA’s latest report, “The impact of climate change on the UK banking sector,” goes on to reiterate October 2017’s Clean Growth Strategy’s aim of opening a consultation focused on bringing the minimum EPC standard for as many privately rented homes as possible to a C rating by 2030, and properties of all tenure types by 2035.
However, the authority hints of more to come, stating that “it is also conceivable that energy efficiency standards could be extended to owner occupiers,” before adding that the Scottish government has implied that it is considering introducing a minimum C standard for owner occupiers “in the 2030s.”
The report adds that 72 per cent of homes in the UK currently rate lower than a C.