Private renters in England face having to pay an additional £1billion in gas and electricity bills due to Government delays in introducing new energy standards, analysts have warned.
The proposed Minimum Energy Efficiency Standards (MEES), first launched in a consultation in 2020, would make all properties with new tenancies have an energy performance certificate (EPC) rating of at least a band C by 2025.
This would then expand to all tenancies in the private rented sector by 2028.
However, the consultation for these plans closed two years ago in January 2021, and no update has been issued since.
Analysis from the Energy and Climate Intelligence Unit found that another two-year delay in implementing the proposals could cost private renters more than £1billion in their energy bills.
This figure also comes under a "reasonable" gas price scenario which sets gas prices falling to 8p per kWh by 2025, so it could cost renters even more.
At the moment, privately rented homes only need to meet the EPC rating of band E, which is considered a "low rating".
An EPC rating is based on how much energy your property uses per square metre, eg for heating, light and so on, and how much energy it loses through things such as poor insulation.
The EPC rating ranges from A to G and the lower the EPC rating the more it costs to heat your home.
More than 2.4million privately rented homes fall below the C band, which makes up 56% of all private rented accommodation in England.
This is actually a much higher figure compared to the socially rented sector which stands at 31%.
Jess Ralston, energy analyst at the Energy and Climate Intelligence Unit, said: “Privately rented homes are often cold, unhealthy and are likely to cost the billpayer and taxpayer billions because of their poor insulation.
"Encouraging private landlords to invest in their properties will lift local economies while saving the NHS millions."
In January, the National Residential Landlords Association (NRLA) said that given Government inaction the timeline for implementation starting in 2025 was in effect “dead in the water”.
Jess added: "Questions are being asked about why something as simple as confirming a new standard is taking this long, when it could save households cash and generate growth at a time when UK growth is at best sluggish – and the Government will certainly be under pressure from landlords and tenants alike as they seek clarity.”
According to the Government's English housing survey, almost a quarter of homes in the private rental sector are classed as “non-decent”, while the same proportion have tenants living in fuel poverty.
With tenants responsible for paying their heating bills, without changes or deadlines, landlords currently have little incentive to upgrade the energy efficiency of their rental properties.
These upgrades include things such as investing in insulation, draught-proofing, double glazing and more efficient heating systems.
A Government spokesperson said: “The Government is improving energy efficiency, including across the private rented sector. Just this month we announced the allocation of £1.8billion worth of support to make homes more energy efficient and the number of homes in England with an energy efficiency rating of C or above has gone from 16% in 2011 to 47% in 2022.
“All privately rented homes in England and Wales are required to meet a minimum standard of energy performance before they can be let.
“We have consulted on this matter and will respond in due course, after careful consideration of ways to make sure improvements are fair and proportionate to both landlords and tenants.”
