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How will the government's commitment to cut emissions affect landlords?

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19 Dec 2020


The Government’s advisory Committee on Climate Change has called for the UK to cut its emissions by 78% by 2035 in a bid to reach a "net zero" pollution goal by 2050.


That leaves just 30 years to reduce almost all emissions to zero (any remaining pollution is to be offset by measures to absorb carbon such as planting trees) and with UK households contributing  40% of emissions, it is inevitable that landlords and other homeowners will be impacted by these changes.


Within the private rental sector, there are already penalties for failing to hit energy efficiency targets. From 1 April 2020 all rental properties will need to have a minimum energy performance rating of E on an Energy Performance Certificate (EPC) and landlords face a civil penalty of up to £4,000 for breaching these regulations. 


But regulation is likely to get tougher in the next few years after the Committee made several key recommendations that are needed for the UK to meet climate goals that will impact property owners, including largely consigning gas boilers to the rubbish dump.


All gas boilers installed from 2025 must be “hydrogen ready” and sales of natural gas boilers will be phased out by 2033, except for homes in areas where the gas grid is set to convert to low-carbon hydrogen.


Gas boilers will be replaced in the majority of homes with heat pumps that run on electricity.

The Committee also called for more action on energy efficiency, in particular insulating buildings.


Energy bills could rise by £100 a year by 2030 to fund clean power, before starting to fall, but that is largely offset by improvements in more efficient appliances, boilers and lights.

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