Will the EU ban the sale or renting of homes with low energy labels?

There is an idea circulating in some media and social networks that the European Union will ban the sale or rental of homes with the lowest energy labels (E, F and G) from certain dates, such as 2030 or 2033. This information is erroneous.

In reality, the European Energy Performance of Buildings Directive does not impose minimum performance standards for residential dwellings, nor does it place limitations on their sale or rental. Nor does it set renovation obligations for individual owners.

What the Directive does do is update the existing regulatory framework to reinforce the EU’s climate ambition, provide tools to Member States and stimulate the renovation of less efficient buildings. The aim is to move towards a fully decarbonised building stock by 2050, with flexibility for each country to adapt the measures to its own reality.

what does the Directive actually say?

• Residential dwellings: Each Member State must define its own roadmap for reducing average energy consumption in the residential sector (16% by 2030 and 20-22% by 2035). To achieve this, at least 55% of the reduction should come from upgrading the least efficient buildings. However, the EU does not set a minimum standard, nor does it prohibit selling, buying or renting low-labelled housing: it is up to each country to decide which measures to implement and which buildings to target.
• Non-residential buildings: minimum energy efficiency standards are set here. The Directive foresees that 16% of the least efficient buildings should be renovated by 2030 and 26% by 2033. However, Member States will be able to derogate, for example for historic buildings or buildings used for tourism.

Conclusion

The Directive sets Europe on the path towards a more efficient and sustainable housing stock by 2050. However, it does not prohibit the sale or rental of low-rated housing, as claimed in some publications. Rather, it seeks to incentivise the progressive renovation of buildings, providing flexibility to Member States and ensuring that measures are adapted to the characteristics of each national building stock.

More information: European Commission