Speculation is mounting that the deadline for landlords to meet new minimum energy efficiency standards for new tenants will be extended.

According to a report in The Telegraph, ‘it is now understood that the deadline will be set at 2028 and apply to all rental properties’.

At the end of 2021, the government consulted on a tightening of the rules which would require landlords to ensure all their properties have a minimum Energy Performance Certificate (EPC) rating of C, rather than the current rating of E.

Under the original carbon-reducing proposals, this would be enforced from April 2025 for new tenancies and from April 2028 for existing tenancies.

There’s been little in the way of updates since the consultation ended two years ago, but it’s now speculated that the 2025 date will be dropped, giving all landlords until 2028 to raise the ratings where necessary.

Once implemented, up to two million landlords could be faced with having to increase the EPC rating, says The Telegraph.

While there’s much talk about the deadline move in the industry, amid concern from landlords about meeting the timeframe and the cost of enhancements, it’s yet to be confirmed. It’s thought the news could be officially revealed as part of the launch of revamped net zero plans on ‘Energy Security Day’ on 30 March.

Research by Mortgage Advice Bureau had suggested two-thirds of landlords were contemplating ‘selling up’ instead of retrofitting due to the costs involved of raising the EPC from C to E.

MAB Deputy CEO Ben Thompson comments: “Landlords, like everyone, are under huge economic pressure from the rising cost of living, coupled with higher interest rates. Delaying the deadline is a sensible and welcome move, but unless there is clear help unveiled to support with the cost of retrofitting, we could find ourselves in the same situation in a few years’ time, which wouldn’t help anyone.

“This does, of course, sadly mean that tenants will continue to struggle with higher energy bills, and so notwithstanding the rental supply point, it’s vital that the government now sticks to these revised dates and that the deadlines are not seen to be easily moved.”

Goodlord head of tenancy services Rik Smith says: “I’m sure the market will welcome the proposed extended deadline to get properties up to standard, but there’s an enormous amount to do before then.

“Landlords across the market are already feeling pressure on many fronts, including rising mortgage rates, so we don’t want a lack of required infrastructure or not fit-for-purpose guidelines to lead them into leaving the sector.”

And Vooch managing director Tom Goodman adds: “With all market regulations, it’s vital to balance long and short-term considerations. The last thing the sector needs is another push factor encouraging landlords to sell-up – there is already too tight a squeeze on rental stock. What we need now is a balanced and supportive approach from the government on the next steps, so that landlords are incentivised to make these upgrades and can afford them.”