Urgent action needed to improve housing in the Private Rented Sector
A new report published by the National Retrofit Hub, in partnership with the Impact on Urban Health, has highlighted urgent concerns with housing quality in the Private Rented Sector (PRS), where tenants are struggling with rising energy costs and inefficient homes, whilst landlords lack the financial support and incentive needed to upgrade their properties.
Who are The National Retrofit Hub?
The National Retrofit Hub is a non-profit collaborative organisation working with the industry to enable the delivery of housing retrofit across the UK. The Hub was officially launched in March 2023 and is funded by sponsorship from Innovate UK, the UK’s national innovation agency, and contributions from many organisations across the sector.
The purpose of the National Retrofit Hub is to engage with retrofit stakeholders to gather information and identify gaps in activity, enhance industry efforts and enable the application of best practices through the sharing of knowledge, and enable collective leadership, good governance and policy engagement.
What does the report cover?
The new report published by the National Retrofit Hub takes an in-depth look at the current state of the Private Rented Sector and the challenges faced within this industry, affecting both tenants and landlords, as well as other key stakeholders. The report also proposes a supported pathway to an improved UK housing stock, taking in to account the needs of both tenants and landlords.
The overarching message of the report is clear; urgent action is needed within this sector to avoid millions of renters living in cold, poorly heated homes.
Tenants face Rising Energy Costs and Poorly Insulated Homes
The UK’s Private Rented Sector (PRS) comprises of over one-third of the total UK housing stock, amounting to more than 4.5 million homes. However, one in three households within this sector struggle to adequately heat their homes[1]. This issue is exacerbated by the poor energy efficiency of many properties, with over half of private renters living in homes that have an Energy Efficiency Rating of D or below[2].
Landlords struggle with the high costs to upgrade their properties
Landlords face their own challenges. Despite the positive commitment by Government to increase the Minimum Energy Efficiency Standards (MEES) to EPC Band C by 2030, landlords must find ways to fund these improvements to enhance the energy efficiency of their properties. Based on current EPC data, the estimated cost to upgrade almost half of homes occupied by private renters (approximately 1.1 million homes) to EPC Band C, ranges between £5,000 and £9,999[3]. While adequate support should be available to assist landlords in funding these improvements if they are unable to do so themselves, the Retrofit Hub’s report indicates that rising interest rates and an uncertain policy environment have significantly impacted landlords’ willingness to invest in upgrading their properties. Many landlords view energy efficiency regulations as compliance hurdles rather than opportunities to improve their property and the living conditions for their tenants.
Elmhurst’s thoughts
The Private Rented Sector lags behind other housing sectors, meaning renters are living in cold, unhealthy homes and potentially in fuel poverty. More needs to be done, and urgently, to improve energy efficiency and the quality of housing in this sector.
Elmhurst supports the recommendations laid out by the National Retrofit Hub in their new report, as outlined below:
- Policy Updates: Strengthen the Minimum Energy Efficiency Standards (MEES) with ambitious yet achievable targets and do this without delay. Exemptions should be reduced to ensure widespread improvements.
- Support for Landlords: Ensure there are adequate incentives and finance options in place for landlords so they can afford the upgrades needed to their property. Introduce tax incentives, “on-bill” retrofit financing schemes, and involve letting agents to streamline upgrades and reduce costs.
- Improve Compliance and Tenant Protections: Tighten compliance in this area to ensure that tenants are properly protected, and they have a fair outcome. There should be enhanced funding for local authorities and enforcement bodies to uphold standards as well as campaigns to raise awareness of compliance to tenants and landlords.
As well as this, Elmhurst would still like to see more progress within the Non-Domestic Sector; with a focus on improving MEES to make ALL rented buildings more energy efficient. Read more on our recommendations for the Non-Domestic Sector here >
Raising Standards in the Private Rented Sector
Read the full report by the National Retrofit Hub.
Read the report >
Sources
[1] https://nationalretrofithub.org.uk/wp-content/uploads/2025/02/Raising-Standards-in-the-Private-Rental-Sector.pdf
[2] https://www.gov.uk/government/statistics/english-housing-survey-2021-to-2022-private-rented-sector/english-housing-survey-2021-to-2022-private-rented-sector#dwelling-condition-energy-efficiency-and-local-area
[3] https://www.gov.uk/government/statistics/english-housing-survey-2021-to-2022-private-rented-sector/english-housing-survey-2021-to-2022-private-rented-sector#dwelling-condition-energy-efficiency-and-local-area