This is an increase from the current EPC rating of E and is similar to proposals from the previous government.
It is calling on tenants and landlords to consult on plans to improve the EPC ratings of private rented properties.
The government said almost half of private rented homes in England are an EPC C rating or higher, but ministers want to “ensure this good practice is extended to all properties in the sector, making sure landlords are not undercut, while protecting tenants”.
Landlords will have to invest in measures such as loft insulation, cavity wall insulation or double glazing.
They will have a choice of how to meet energy-efficiency standards, with the above as the first port of call before moving on to batteries, solar panels and smart meters.
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Proposals include a maximum cap of £15,000 per property, with an affordability exemption that would lower the cost cap to £10,000, which could be applied based on lower rents or council tax bands.
The government estimated the average cost for landlords of complying with the proposals to upgrade their properties to be between £6,100 and £6,800 by 2030.
The improved EPC ratings could save private renters up to £240 per year on average on energy bills.
The government is also consulting on a revised poverty fuel strategy set on “improving the energy performance of homes, supporting low-income households with energy affordability and protecting them from high prices”.
Angela Rayner, deputy Prime Minister and Housing Secretary, said: “For far too long, we have seen too many tenants plagued by shoddy and poor conditions in their homes, and this government is taking swift action to right the wrongs of the past.
“Through our Plan for Change, we are driving up housing standards, improving quality of life, and slashing energy bills for working people and families.”
She continued: “Today is just one of many steps we are taking to deliver on our promise to transform the lives of millions of renters across the country, so families can put down roots and raise their children in secure and healthy homes.”
Ed Miliband, Energy Secretary, said: “For years, tenants have been abandoned and forgotten as opportunities to deliver warm homes and lower energy bills have been disregarded and ignored.
“As part of our Plan for Change, these new changes could save renters £240 a year by raising the efficiency of homes to cut the cost of bills.
“These plans will also make sure that all private landlords are investing in their properties, building on the good work of many to upgrade their homes to EPC C or higher already.”
Recent research found that around 58% of landlords with an EPC rating of C or below were delaying upgrades.
EPC rating improvement strategy requires ‘realistic plan’
Ben Beadle, chief executive of the National Residential Landlords Association (NRLA), said everyone in the sector wanted to see “rented homes [be] as energy efficient as possible, but that will require a realistic plan to achieve this”.
He said: “The chronic shortage of tradespeople to carry out energy-efficiency works needs to be addressed, alongside a targeted financial package to support investments in the work required, as called for by the Committee on Fuel Poverty and Citizens Advice.
“Importantly, a realistic timetable is needed if the 2.5 million private rented homes, which will not currently meet the government’s proposed standards, are to be improved.”
Ben Twomey, chief executive at Generation Rent, said a quarter of private renters live in fuel poverty, the highest of any tenure.
“If we can’t afford to heat our homes properly, that makes us vulnerable to ill health and other problems in the home like damp and mould. Therefore, we encourage renters across the country to respond to this consultation to make sure the benefits of the Warm Homes plan are felt by tenants,” he said.
