We recently saw Reform UK make significant inroads during England’s local and mayoral elections.
Whichever side of the political fence you sit on, this shift marks a significant change and one that could shape future policies, especially those around energy efficiency targets.
Nigel Farage’s Reform UK secured 677 of around 1,600 contested seats, gaining majority control in ten local councils, winning two mayoral races, and securing a fifth seat in the House of Commons.
If we put immigration to one side, one of Reform’s core pledges in its manifesto is to “scrap energy levies and Net Zero,” which it says will save each household £500 per year. Instead, it plans to “unlock Britain’s vast oil and gas reserves”.
Richard Tice, Reform UK’s deputy leader, has already said the party will use “every lever” available to block renewable energy developments in the areas it now controls, stating: “This is war.”
It’s fair to say we’re now seeing the emergence of American-style climate change scepticism in British politics – a noticeable shift in sentiment from 2019, when Conservative Prime Minister, Theresa May, introduced the 2050 net zero target to widespread public and cross-party support.
We don’t necessarily need Reform UK to hold a majority to see its influence. We’ve recently seen the closure of new applications for the Health and Care Worker visa route for overseas care workers, as well as talk of a u-turn on scrapping the Winter Fuel Allowance – moves which some say are the Government’s response to the local election results.
As political pressures mount, there is a risk we may also see some form of dilution of net zero policies as the Government looks to reconnect with voters and steady the ship.
Could we see an EPC backtrack?
The timing of the local election results came at a pivotal point for the buy-to-let sector, given the consultation into improving energy efficiency standards in the PRS has just closed.
The market is in the final throes of what will be the requirement for landlords to have an Energy Performance Certificate (EPC) C rating by 2028 for new tenancies and 2030 for existing ones.
This is something the industry has been working towards for some time – with estimates that just under half of all privately-rented homes in England already have a C rating. Yet if the Government was looking for a way to appease the anti-net zero crowd, this may well be it. UK Finance recently joined the calls for the Government to re-think its rental property EPC deadlines.
While it supports the Government’s net zero goal, it has long called for a more holistic approach to retrofitting and believes there should be more support for property owners before the legislation is introduced.
Remarkably, in a recent survey carried out by the trade body, 42% of landlords said they were not aware of the upcoming EPC regulations and 27% did not know what EPC rating their properties currently held.
UK Finance says that based on its projections, all mortgaged landlords will not reach EPC C until between 2037 and 2043. It suggests that, without its recommendations – such as Government support, increased awareness, and access to information and qualified installers – only 55% of mortgaged buy-to-let properties will reach the minimum EPC C by 2028, and 60% will achieve EPC C by 2030.
We also have the Renters Reform Bill coming in. I’m sure there are some landlords who either cannot afford – or don’t want to – spend up to £15,000 to meet the EPC C rating.
Labour’s 2024 manifesto promised to ‘ensure homes in the private rented sector meet minimum energy efficiency standards by 2030, saving renters hundreds of pounds per year’. Yet finding the right balance on EPC targets presents a genuine challenge for the Government amid Reform UK’s rising popularity.
While decarbonising our housing stock remains crucial to meeting the UK’s net zero commitments, the economic pressures facing landlords – and the practical timeline for implementation – can’t be ignored.
It may be that the Government needs to consider a more gradual, supported approach – one that maintains its commitment to net zero while also addressing the financial concerns that have helped fuel an anti-net-zero sentiment among some voters.
Simon Jackson is managing director of SDL Surveying
