Landlords in England and Wales are required to install energy efficiency measures in privately rented homes that have the lowest energy performance ratings.
In 2019, properties with an Energy Performance Certificate (EPC) rating of F or G – the lowest two energy efficiency ratings – must be made warmer by landlords before they can be put on the rental market for new tenants.
It is expected to cost around £1,200 on average and affect 290,000 properties, which represent around 6% of the overall domestic market.
Since April this year, landlords who own the coldest privately rented homes have been required to improve these properties with energy efficiency measures where support is available to cover the costs.
The new measures go further, requiring around 200,000 landlords to contribute to the cost of the upgrades, such as installing floor insulation, low energy lighting or increasing loft insulation.
The government said analysis has shown the cost to the landlord would be more than offset by the increase in property value following the upgrades.
However, if upgrades cost more than £3,500, landlords will be able to register for an exemption.
Ms Perry added: “While the vast majority of landlords take great pride in the properties they own, a minority still rent out housing that is difficult to keep warm. Upgrading these homes so they are more energy efficient is one of the most effective ways to tackle fuel poverty and help bring down bills for their tenants, saving them £180 a year.
“Everyone should be protected against the cold in their own home and today’s announcement will bring this reality closer.”