South West holiday lets fear cost of energy efficiency plans

BBC News

25-05-2025

Short-term holiday lets across the South West of England could be forced out of business by new rules to make them more energy efficient, tourism bosses have warned.The government has proposed properties must have at least a grade C rating as part of changes to Energy Performance Certificates (EPCs). Tourism leaders said they feared the cost of upgrading old stone cottages in the region to meet new standards would be prohibitive with owners deciding to sell up instead.The government said it had consulted with the short-term letting industry about its proposals and would look at the results.
'Expensive process'
Neil Dennett runs four holiday cottages near Looe and estimated the cost of changes to make them more energy efficient could come to about £60,000."We'd have to put in floor insulation, wall insulation and ceiling insulation," he said."This would necessitate ripping the floor out of the kitchen, relaying it, retiling, redecorating and it would be exactly the same scenario with the walls and ceiling."In these old buildings the walls are about a metre thick and they are also not straight so it's going to be an expensive process."If we have to do that, it effectively means we will have to shut the business down because it becomes unviable."It will be a real shame to see that level of investment and effort we've put in disappear."
Under the changes, most owners would be expected to spend up to £15,000 to try to make their accommodation more energy efficient including using better insultation and air-source heat pumps.Alistair Handyside, chair of the South West Tourism Alliance, predicted that could spell disaster."You're asking people to spend three years of profit in advance in order to continue to trade," he said."It's too expensive, it's going to happen too quickly, and so we think that a lot of people will finally close the door."Our data is showing 30%."The visitor economy is a fragile eco system."If you remove a lot of the bed stock you remove the ability for people to stay in that area and, if they can't stay, they don't go to visitor attractions, pubs or restaurants."
The government said its proposals would help make houses cheaper to heat and reduce fuel poverty.It also insisted it would look at affordability exemptions for some owners. A spokesperson for the Department for Energy Security and Net Zero said: "We have consulted widely on our plans for private rented homes to achieve Energy Performance Certificate C or equivalent by 2030, including those representing the short-term letting industry."The consultation has now closed and we will consider the evidence received."We will set out our position as part of the consultation response in due course."