Will Labour ever turn to PRS landlords to help them out?
10 months ago | 21 comments
Landlords are not cash cows – but we are caught up in the EPC net
9:59 AM, 20th June 2025, 10 months ago
21
Are there any other landlords who are fed up with the narrative that we are swimming in wealth, ready to splash out thousands on energy performance certificate (EPC) upgrades?
This is a tired trope that needs debunking especially since tenant advocacy groups like Generation Rent claim landlords can ‘easily afford’ the costly upgrades required to meet the government’s ambitious EPC C targets by 2030, with new tenancies facing the deadline as early as 2028.
This assertion assumes landlords are sitting on piles of cash, unburdened by mortgages or the spiralling costs of maintaining rental properties.
The reality is far less rosy, and the government’s pitiful lack of joined up thinking on policies affecting the PRS only tightens the noose around the sector.
Let’s start with the numbers since research from epIMS estimates that upgrading the 2.58 million private rental properties currently below an EPC C rating could cost landlords a staggering £19.8 billion, with an average cost of £8,000 per property.
In London, where 1.2 million rental homes need upgrades, the bill could hit £4.7 billion, with costs averaging £9,000 per property.
For a landlord with a portfolio of eight properties, that’s a potential £64,000 hit over the next five years.
Most landlords aren’t rich
Yet, Generation Rent blithely asserts that because many landlords are mortgage-free (most are not), all of us can foot this bill without blinking.
Tell that to the landlords scraping by on slim margins, juggling maintenance, taxes and selective licensing and now we face the looming threat of ‘death by a thousand clipboard checks’.
The government’s new Reduced Data Standard Assessment Procedure (RdSAP) for EPC assessments has only made matters worse.
Energy assessors will now collect more detailed data, down to the type and condition of windows and the efficiency of heating systems based on model numbers.
While the government claims this will provide a ‘clearer picture’ of a property’s energy efficiency, experts warn it could lead to many homes dropping an EPC band.
Now, for those who don’t quite understand the significance of that, a property that barely scraped a C rating could now be downgraded to a D, rendering it unlettable under the new rules unless landlords cough up for upgrades.
One retrofit company says that changes in how electric heating systems are scored could penalise properties with heat pumps, perversely discouraging green investments.
We are facing an unpalatable issue – landlords who have spent their way to scrape to a C rating from D might well see the property being downgraded back to D.
There’s also the potential of landlords who have invested in heat pumps seeing the EPC rating being downgraded because of the pump’s electric running costs.
Net Zero madness
This isn’t Net Zero progress – it’s a bureaucratic nightmare that punishes landlords for trying to comply.
I’m fully on board now with those landlords who have been telling us to ignore the government’s urgings in recent years and wait until the scoring system is settled.
I can’t even bring myself to discuss the government’s Warm Homes Plan, with its £13.2 billion funding, is touted as a lifeline, but while grants are available, they have strict eligibility limited to tenants on low incomes.
Even then, the maximum investment cap for exemptions is £15,000 – hardly enough for older properties requiring extensive retrofitting.
Leading Labour lights insist that these upgrades won’t lead to rent rises but Labour’s own Justice Minister, Sarah Sackman, let the cat out of the bag when she confirmed that landlords can legally factor EPC costs into ‘higher market rents’.
The Conservatives estimate this could mean rent increases of up to £4,000 a year, a burden tenants can ill afford in a cost-of-living crisis.
The EPC debacle will inevitably see good, blameless tenants being evicted because landlords don’t have tens of thousands of pounds lying around to carry out the work.
The government wants to decarbonise homes – only for the PRS – and yet the EPC system is widely criticised as unfit for purpose.
The Energy Security and Net Zero Committee says that EPCs are ‘devalued’ by landlords and tenants alike, with many ignoring ratings altogether.
Proposals to require new EPCs for every tenancy, even for existing tenants, add yet another layer of cost and complexity. For HMOs, where tenant turnover can be as frequent as every nine months, this could mean a new EPC every time a single room is relet – a logistical and financial disaster.
Landlords aren’t anti-environment. Many are proactively upgrading properties, but the system offers little incentive.
Tory MPs have urged tax breaks to offset costs, arguing that energy-efficient homes could reduce tenants’ bills and reliance on foreign fuel. Yet, the government seems more interested in punitive regulations than practical support.
Being a landlord today
The real-world ignorance of what it takes to be a landlord today is staggering.
Between rising EPC costs, the Renters’ Rights Bill, and the potential abolition of Section 21, 73% of landlords report plummeting confidence.
It’s time to stop painting landlords as cash-rich villains.
We’re navigating a minefield of regulations, rising costs and unrealistic expectations.
If the government wants a greener PRS, it needs to offer real support – tax incentives, streamlined grants and a fairer EPC system – rather than piling on more burdens.
Otherwise, the only thing ‘net zero’ will describe is the number of rental properties left on the market.
Until next time,
The Landlord Crusader
Tags:
energy efficiency, EPC upgrades, housing crisis, landlord costs, Landlords, Net Zero, Private Rented Sector, PRS, renters rights bill, The Landlord Crusader, Warm Homes Plan
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Member Since December 2015 - Comments: 292
1:36 PM, 20th June 2025, About 10 months ago
Yes they are disturbing. I thought I had had a few really bad ones but with the exception of a place I let via a LA (the Tenants blocked all the drainage and let the taps run) you have the dubious honour of beating mine hands down. Congratulations. Best of luck in getting asap.
Member Since April 2023 - Comments: 4
4:17 PM, 20th June 2025, About 10 months ago
Currently losing money each year, due to taxes and non-payment of rent.
We spent money to improve our house, in preparation for the EPC rules, only to find that our scores have decreased on four of our properties. The EPCs do not make sense and are our biggest concern.
We have now started to sell up, 2 down and 26 to go.
Member Since June 2013 - Comments: 3246 - Articles: 81
4:22 PM, 20th June 2025, About 10 months ago
Reply to the comment left by Ian Sam at 20/06/2025 – 16:17
Well done, I’ve got 9 completed, dozens more to go.
I was gonna’ keep 10-2o of my best houses, of which along the way when my best tenants have asked me, I’ve moved em into the poshest nicest bungalows etc. that I thought I may keep forever, but if Govt says Ooh no Mick u got to spend 20k each on them, I may just think u know what, all the road is the same but cause mine are rented, you’ll leave the others, screw u, u can house these people.
Member Since December 2022 - Comments: 1
4:27 PM, 20th June 2025, About 10 months ago
Given the current financial pressures, it may be more viable not to let the property at all. If the property is mortgage-free, one option could be to make it uninhabitable—such as by removing the roof—thereby potentially qualifying for a council tax exemption. This would also eliminate the need to meet costly EPC upgrade requirements, which are currently making the property a loss-maker if rented.
If the property is officially deemed uninhabitable by the local council, you may be eligible for a council tax exemption or discount. Additionally, by disconnecting utilities, you could avoid standing charges for gas, electricity, and water. This approach could significantly reduce ongoing costs, especially if rental income is not covering expenses.
Member Since November 2019 - Comments: 153
7:51 PM, 20th June 2025, About 10 months ago
Very Good article Mick , It is exactly as it is.
Thanks for the time taken to write it.
Another Point that other Landlord may have not considered is . after 2028 any BTL property without a C grade will not be mortgageable. Nor will you be able to get off the Lenders SVR 8.75 % when you come to the end of your fixed term .
This could be more than 50% of rental stock in the country.
Member Since June 2013 - Comments: 3246 - Articles: 81
5:22 AM, 21st June 2025, About 10 months ago
Reply to the comment left by Northernpleb at 20/06/2025 – 19:51
That’s a point, yes some articles yesterday on Aldermore & others giving more attractive rates for EPC C-As there were a few years ago.
And like u say, if people can’t remortgage at all, that puts a lot of tenants, then consequently Govt & Councils in the crap with housing em.
Too many retrospective changes AFTER the house has already been built.
Do you see that Ferrari u have there sir, well u now got to make it do 60mpg or it’s scrapped.
Member Since March 2018 - Comments: 6
11:21 AM, 21st June 2025, About 10 months ago
I only have 2 rental properties and have just had the EPCs re-graded for both. One has come out grade D and will cost circa £16k to upgrade to C. This would apparently save my tenant £200 p.a. in energy costs. Whoopy do! I would have to increase my tenant’s rent by £300 p.m just to try and recoup the capital outlay over a reasonable time frame so any saving for the tenant would be wiped out. As a consequence I am having to sell that property now as it doesn’t make financial sense to update the property. I can’t risk waiting until the Renters Right Bill becomes law in case this complicates the eviction process so I have issued the S21 now.
I charge my tenant £300 p.m less than the market rate, which I was happy with and she could afford. She’s been in the property for 9 years and has 3 children. She now can’t afford to rent a similar property locally so will be the Council’s responsibility to house. Well done Mr Milliband.
My other property, a 2 bed flat in the London borough of Havering was graded EPC band B. Great, or it would have been but now looks like Havering are bringing in selective licencing (in “consultation” but we all know what that means) at £950 per property. The cost isn’t the major issue. It appears that the licencing may require any bedroom for someone age 10 and over must be 6.5m square. The purpose built property development of circa 65 flats has second bedrooms measuring 5.4m square. Therefore, if the selective licencing comes in I would have to evict my tenant of 5 years, a single mother with a 14 year old child. Presumably many of the remaining 64 properties on the development would be similarly affected or would have to risk a Council fine if they keep letting their properties.
So in a relatively short space of time legislation meant to improve the wellbeing of tenants is likely to result in the 2 families I house being made homeless.
Member Since May 2014 - Comments: 620
2:35 PM, 21st June 2025, About 10 months ago
Reply to the comment left by Digger at 21/06/2025 – 11:21
This is proof that the government are clueless about the impact that their bad legislation is having on landlords and tenants.
To get my victorian houses to a C will cost a fortune and where will we put the tenants in the meantime.
I should have started selling up sooner!
I also remember being very glad to rent a small room in my early twenties and it did not measure as much as 6.5sq meters.
They are deliberately making people homeless and pretending that they are on the side of the tenants.
Member Since May 2024 - Comments: 204
2:23 AM, 22nd June 2025, About 10 months ago
Reply to the comment left by Mick Roberts at 20/06/2025 – 10:21
Mick, I totally agree with you. The more the government kick landlords, the more it will hurt tenants, especially anyone on benefits. No one will want to rent to them anymore.
Luckily, I only have a few people receiving UC.
EPC C just for private landlords and no one else is just crazy. Just looked at the last new EPC I looked at. Solar water heating would cost 4-6k and would save the tenant £44 a year. That would take over 136 years to pay back and when you add inflation….
I have to wonder about the carbon impact of producing the parts for solar water heating?
The government are doing everything they can to get rid of the PRS so that it can be owned by big commercial companies that pay for their campaigns.
I’ve done what I can to get my houses to an EPC C, the ones that don’t make it will be sold and they can have their CGT and I’m pulling whatever is left out of the UK and will invest elsewhere.
I tried emailing my local MP and got a BS answer.The government really do not want a PRS.
Lets see how they do when we all sell up.
Member Since June 2013 - Comments: 3246 - Articles: 81
12:59 PM, 22nd June 2025, About 10 months ago
Reply to the comment left by Desert Rat at 22/06/2025 – 02:23
Good stats on your solar heating, that should say it all to Govt, will they listen though….