EPC C targets should not require landlords to raise rents claims government

EPC C targets should not require landlords to raise rents claims government

House with EPC energy efficiency rating bars and upward arrow highlighting rental property energy standards
9:20 AM, 26th January 2026, 3 months ago 39
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The government claim landlords will not have to raise rents to meet EPC C targets by 2030, despite a government consultation claiming the opposite.

Under the Warm Homes Plan, the government announced all private rented properties will need to meet EPC C targets by 2030.

However, a government consultation on meeting EPC C targets admits landlords may sell up or increase rents due to EPC rules.

Our proposed changes should not require landlords to increase rents

In response to a written question from Conservative MP Paul Holmes on “whether the government has made an assessment of the potential impact of the costs of new energy efficiency measures on the level of open market rents.”

Martin McCluskey, Minister for Energy Consumers, said landlords would not need to raise rents.

He said: “The government recently consulted on increasing minimum energy efficiency standards in the domestic private rented sector, including proposals for rented homes to achieve Energy Performance Certificate C or equivalent by 2030.

“We have engaged with landlord and tenant groups in developing this policy and set out several proposals to help landlords reach the new standard.

“Our proposed changes should not require landlords to increase rents. Instead, they will help tenants cut their energy bills by delivering more energy-efficient homes.”

Landlords may decide to leave the market

However, as previously reported on Property118, a government consultation documents admits some landlords could choose to sell rather than comply with EPC rules.

The document says: “Landlords may decide to exit the market. The likelihood of this is dependent on the current profitability of their rental property, the level of costs they face, the price landlords would receive from the sale of their property and their wider financial circumstances.

“The prices of EPC F/G PRS properties affected by the current regulations (requiring PRS properties to be EPC E) decreased by about £5,000 to £9,000, relative to unaffected properties.

“If a similar situation were to arise in the context of higher Minimum Energy-Efficiency Standards (MEES), landlords may decide it is more profitable to improve properties and remain as landlords. However, landlords who face the highest costs may decide, on balance, it is still less costly to sell their property than comply with the higher energy performance standard.”

The document also says some landlords may also decide instead to pass costs onto tenants through higher rents, but some tenants may decide to stay if higher rents are offset by lower energy bills.


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Comments

  • Member Since October 2023 - Comments: 36

    9:32 AM, 26th January 2026, About 3 months ago

    As usual Liebour lives in cloud cuckoo land. I’m sure there all away with the fairies! Liebour couldn’t run a bath let alone the country. I can’t wait for a responsible government with common sense that recognises the actual workings of the PRS business.

  • Member Since May 2022 - Comments: 90

    9:40 AM, 26th January 2026, About 3 months ago

    So, the cost of claiming for staff is an allowable expense for MP’s.

    Presumably, the Labour ones will therefore not charge or set off the additional NIC costs imposed by their Government or any other increased charges incurred?

    MP’s claim for certain expenses and when these increase, so do their claims.

  • Member Since January 2016 - Comments: 67

    9:55 AM, 26th January 2026, About 3 months ago

    How incompetent and clueless these Marxist lot are, is jaw dropping. As already said, they live in cloud cuckoo land where they expect landlords to help tenants reduce their energy costs with themselves being £000s out of pocket; and they don’t think landlords would need to pass that extra cost on to tenants through higher rent. Unbelievable.

  • Member Since September 2018 - Comments: 3535 - Articles: 5

    10:09 AM, 26th January 2026, About 3 months ago

    I’ve read a bit more into it and they are also looking at revising the way the current EPC is calculated.

    Apparently a new EPC metric is focussing on insulating measures first and then the mode of heating. So if you pass the first part and the property is insulated as best it can be you then move onto the next stage. The idea being that solar or heat pumps will be the ONLY way to achieve the C on this part (gas boilers will never get you past a D).

    Any money spent to do this will be a capital expense ONLY – meaning only realised when you sell the property (so value diminishing over time). You can’t claim this as expenses.

    All this will do is heighten the reason for a LL to sell either before the work is done (get out) or straight after to utilise the capital expense, especially if the C cannot be met (knowing this will have to be met at some point ahead). (NB exemptions do not apply once the current tenant moves out, as you still need to evidence why you cannot raise to a C which will need another EPC…)

    The spend cap is property VALUE related. Lower value properties are in the main in poorer areas. The cost cap may reduce, but the money for the works has to paid for, so how is an income capped tenant going to afford this?

    Surely any spend cap has to be looked at in regard to the rental income. Property values change.

    How do you value a flat in a building of 10 other flats (all different sizes) if the title deeds shows the building is as a whole with each flat has its own EPC ??

    The consultation is open regarding the new EPC metrics.

    There is no much wrong with this proposal its literally going to be pointless letting anything.
    https://www.gov.uk/government/consultations/reforms-to-the-energy-performance-of-buildings-regime/reforms-to-the-energy-performance-of-buildings-regime

  • Member Since October 2023 - Comments: 205

    10:16 AM, 26th January 2026, About 3 months ago

    Yes, in the same way MP’s will never need a pay rise ever again!

  • Member Since October 2023 - Comments: 36

    10:22 AM, 26th January 2026, About 3 months ago

    The answer is simple to this EPC fiasco. Just sell up before 2030 and never worry about EPCs again. This government will be gone by 2030 but the EPC problem will still be there. A lot of tenants are going to be homeless, thanks Ed Millipede your a national treasure

  • Member Since December 2019 - Comments: 8

    10:22 AM, 26th January 2026, About 3 months ago

    Surely this is just getting far too complicated for landlords with a small portfolio. And why not roll this out across social housing and private housing? Why just just a subsection.

    If the risk is too great and the return too poor, then it’s time to invest elsewhere. This is simple business economics.

  • Member Since April 2018 - Comments: 374

    10:28 AM, 26th January 2026, About 3 months ago

    Who is this idiot

  • Member Since May 2015 - Comments: 2203 - Articles: 2

    10:45 AM, 26th January 2026, About 3 months ago

    Reply to the comment left by David at 26/01/2026 – 10:28
    Do you mean who is this esteemed Minister for Energy Consumers, Martin McCluskey, who has performed in depth financial calculations to ascertain the viability of energy measures in relation to rent?

  • Member Since January 2022 - Comments: 267

    11:06 AM, 26th January 2026, About 3 months ago

    Do we know which Landlord and Tenant Groups were consulted?
    I find it suspicious that these organisations have Not been named by the Minister.
    I wonder why.
    Expecting landlords to invest capital to improve the EPC for the benefit of another, who is then likely to have lower energy costs immediately. So can I wait until I die before I pay any taxes to the inland revenue?
    No wonder this Government is struggling to manage this country!

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