The NRLA has warned that new periodic tenancies and the end of Section 21 could make it harder for landlords to start energy efficiency improvements.

All rental properties must achieve EPC band C by October 2030 and for many, this will mean substantial improvements, such as upgraded insulation, new heating systems, and double glazing – work which can be challenging to complete while tenants are living in the property.

While landlords used to be able to wait for a tenancy to end or use Section 21 to create a void period in which to carry out works, now tenancies are open-ended and possession requires a legal ground, many landlords will question how they can retrofit a property when the tenant has no obligation to go, says public affairs officer Mia Rotaru.

The only viable possession route for retrofit is Ground 6, which applies where a landlord intends to demolish or substantially redevelop a property and can't do so with the tenant in place. However, this test is quite narrow, says Rotaru, as ‘substantial’ requires a high standard, usually involving structural or transformative changes that make the property uninhabitable. Many energy efficiency upgrades, even costly ones, probably won't meet this threshold.  

Limitations

There are also technical limitations meaning that the landlord must have owned the property before the tenancy started, and the tenancy must have lasted at least six months.  

“In practice, Ground 6 will only apply in a limited number of situations,” she explains. “If using this ground, landlords won’t need to provide alternative accommodation if they gave a tenant notice before the tenancy started that they intended to use Ground 6.”

Co-operation

Where they need tenant cooperation, landlords can register a third-party consent exemption under MEES which offers protection from enforcement, provided genuine attempts to obtain consent are made and can be evidenced.

However, this is only a temporary solution as the exemption lasts five years or until the tenancy ends, whichever comes first. It does not remove the requirement to meet EPC C, it simply delays it. And once the tenant leaves, the exemption is no longer valid, and improvements need to be made.

“To prevent financial penalties and last-minute disruptions, landlords should proactively plan retrofit work carefully and maintain transparent communication with tenants,” she adds.

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