Reapit has said a lack of enforcement around Energy Performance Certificates (EPCs) in the private rental sector (PRS) could “undermine” the government’s energy-efficiency goals.
The property agent software firm sent Freedom of Information requests to some of the bigger councils in England, including Liverpool, Manchester, Brighton, Birmingham, Leeds and Bristol. The firm asked how many rogue landlords were fined for not complying with current EPC rules.
Across all councils surveyed, only 147 fines were issued and only in Liverpool, Bristol and Newham.
Reapit also asked councils how many properties in the PRS were exempt from minimum energy-efficiency regulations. Of the councils that provided data, just 325 exempt properties were known. However, most of the councils that were contacted were unable to provide a number, Reapit said.
The firm’s request highlighted a lack of funding, with one council saying it had an “intelligence-led approach”, meaning it relied on complaints rather than investigations. The council said, therefore, local Trading Standards was “not proactively undertaking exercises in relation to this issue”.
How to support young landlords
Sponsored by BM Solutions
High cost, minimal implementation
Dr Neil Cobbold, commercial director at Reapit, 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.”
Cobbold said this threw the government’s 2030 EPC deadline into question, particularly as it has been estimated that landlords will need to collectively spend £24bn upgrading properties over the next five years.
He said: “What is the incentive for landlords when the risk of being caught is so low and the cost so very high?”
No more selective licensing schemes
Cobbold continued to say that because of this, there was no need for more selective licensing schemes. Last month, the government announced it would give local authorities more powers to enact this.
He said: “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 private rental sector are clear – local authorities simply need to enforce them better or risk undermining the government’s energy-efficiency drive.”
