Stuart Anderson MP has warned against a multi-billion penalty on holiday lets, which he has said would devastate tourism in rural areas like South Shropshire by spelling the end of the 'staycation'.
More than two thousand holiday lets in Shropshire could soon face punitive bills of up to £15,000 per cottage under plans set to be unveiled by Energy Secretary Ed Miliband.
The plans would effectively ban holiday lets from 2028, unless owners obtain an Energy Performance Certificate (EPC) rating of C or spend £15,000 trying to do so.
The rules for a minimum EPC rating were originally intended to tackle household fuel poverty for longer term residents.
Under the plans, they would apply to holiday properties at the point of being let - regardless of who pays the energy bills.
Stuart’s campaign follows a meeting with the Professional Association of Self-Caterers (PASC UK). With more than two thousand members, it is the sector's largest trade association.
Almost a third of PASC UK members have said that they would be forced to cease trading if the changes were imposed. Many of these properties would ultimately end up unusable and sit empty.
Stuart has said that this would devastate Shropshire's visitor economy by reducing choice for holiday-makers and risking rural employment opportunities.
In Shropshire, overnight trips generated over £166 million for the local economy between 2022 and 2024, with more than 2.4 million bednights spent in the county.
Stuart has said that this has a positive impact on the local hospitality sector, which employs more than 3,400 people across 800 venues.
In a letter to Energy Secretary Ed Miliband, Stuart has said that these rules should not apply to short-term holiday lets as EPCs were designed for long-term rentals where tenants pay the energy bills.
By contrast, many holiday lets are occupied more frequently in summer when heating is not needed as much - with shorter weekend breaks more common in the winter months.
Many holiday lets can only be used for 28 days or less per year due to planning restrictions. Many are also in remote locations which have features that make them unsuitable for family use.
Almost a quarter are listed buildings. A further quarter are located on farms which have diversifed their offer by converting derelict or empty buildings.
Many holiday lets are more than one hundred years old. This makes compliance technically impossible without significant work to alter the structure.
Indeed, 74% of holiday lets have EPC Band D or lower. As such, they would require costly upgrades to meet the requirements for continued operations.
On average, holiday lets turn over between £20,000 and £30,000 each year. However, most turn over substantially less than that.
This means that the costly upgrades represent six months of income - excluding mortgage, maintenance, and council tax. This also accounts for entire profit over three years.
If the costs are passed on to guests, the price of a domestic holiday would sharply increase. This would undermine the businesses that form a vital part of Shropshire's tourism and hospitality sector.
The policy would also inevitably drive up the cost of staycations and reduce the availability of accommodation, pushing more families to travel abroad and generating far greater CO₂ emissions.
For example, a family of four flying to Spain rather than holidaying in the UK would produce an additional 2.9 tonnes of CO₂.
Stuart has said that this would directly undermine what the government is trying to achieve, as it is roughly the same amount generated by heating a typical home for twelve months.
Staycations are, in fact, a far greener and more environmentally responsible choice for consumers who are embarking on new adventures or returning to familiar places across the UK.
Stuart's campaign is part of his plan to unleash rural prosperity, which seeks to secure the opportunities, development, and growth needed to boost the rural economy.
The government has said that it is considering the feedback that it has received and will publish its response in due course.
Stuart Anderson MP said:
"Holiday lets in South Shropshire provide a sustainable tourism option that supports our rural economy and the regeneration of older buildings, including diversified farms. In Shropshire, overnight trips generated over £166 million for the local economy between 2022 and 2024, with more than 2.4 million bednights spent in the county. This has a positive impact on the local hospitality sector, which employs more than 3,400 people across 800 venues. I am grealty concerned by government plans to extend EPCs to holiday lets. This would impose a multi-billion penalty that would devastate our visitor economy sector, with expensive bills for unnecessary energy upgrades that put their future at risk. and spell the end of the staycation. Given this situation, I have urged the Energy Secretary Ed Miliband to rethink these reforms before they make life even harder for businesses in our tourism and hospitality sectors, which are already under huge pressure from rising costs and more tax hikes announced in the Autumn Budget."
Alistair Handyside, Chair of PASC UK, said:
"Holiday lets are a lifeline for rural communities, supporting jobs, local businesses, and tourism across the UK. But these proposals risk turning that lifeline into a closure notice. Minimum EPC standards were designed to protect long-term tenants from high energy bills — not short-term holidaymakers. Forcing costly upgrades on historic cottages and remote farm buildings is simply unworkable. The Government must recognise that a one-size-fits-all approach will devastate the sector, leading to closures, lost income, and higher emissions as families choose holidays abroad instead. We welcome the support of Stuart Anderson MP and call on fellow MPs to join us in urging the Government to urgently rethink these reforms and protect rural tourism."
