Minimum Energy Efficiency Standards: Cost Caps for Landlords

Baroness Warwick of Undercliffe Excerpts

Monday 15th September 2025 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

I thank the noble Lord. Obviously, there is clear value in common standards. The reason we consulted on a different level for the social housing sector was twofold: to provide finance for social housing delivery and due to the fact that social housing landlords can often achieve an economy of scale in dealing with their properties. As I said, no decisions have been taken yet. To respond to the noble Lord’s point on financing, there were a number of proposals in the consultation about managing the cost burden on private landlords, including a cap on the maximum investment required per property, an affordability exemption and a range of other exemptions for circumstances in which upgrades may not be feasible or appropriate, such as in the case of traditionally constructed and heritage buildings.

[Baroness Warwick of Undercliffe (Lab)]

My Lords, there is a significant number of homes that remain hard to decarbonise for which the interventions required to meet energy efficiency standards can be extremely costly. In the social housing sector, while the majority of housing associations are on track to meet EER C by 2030, for some they can meet it only by selling homes, unless there is a cost cap. I note what my noble friend said in her reply, but I urge her to say a little more about whether the Government plan to implement the £10,000 spend exemption for MEES for the social rented sector, either in a time-limited way or as a permanent exemption.

[Baroness Taylor of Stevenage (Lab)]

I understand the points the noble Baroness is making. That is one of the reasons why we consulted on two different levels. The consultation for the implementation of MEES would require social homes to have energy performance certificates at rating C or equivalent by 2030. There is currently no minimum energy efficiency standard in the social rented sector. Some 72% of social rented homes are already at EPC bands A to C. More than 600,000 social homes are in fuel poverty, so improving the energy efficiency of social homes will help reduce energy bills and tackle fuel poverty. This is important. Having gone through the debate on Awaab’s law the other day, I know it is vital that social homes are brought up to the standards we all want to see.