Landlords to meet 2030 EPC deadline with a £15,000 cap - Government

Landlords to meet 2030 EPC deadline with a £15,000 cap – Government

Small wooden house with coins and energy efficiency rating chart highlighting 2030 target.
10:27 AM, 7th February 2025, 1 year ago 115

Private landlords in England will need to upgrade their properties to meet a minimum Energy Performance Certificate (EPC) rating of C by 2030, under a consultation announced by the government.

Nottingham landlord Mick Roberts has hit out at the government plans saying they ‘will simply increase rents and make tenants homeless’ – see his hard hitting video below.

This new requirement, the government says, will improve living standards for renters and reduce energy costs.

Currently, 48% of private rentals already meet this standard.

The changes will necessitate investments in insulation, double glazing, and other energy-saving measures.

Inviting feedback from landlords

The government’s consultation is inviting feedback from tenants and landlords on plans to boost living standards in the PRS and lower energy costs. Key proposals include:

  • Flexible upgrades: Landlords can choose how to achieve the required energy efficiency, starting with fundamental improvements like insulation and double glazing before considering options such as batteries, solar panels and smart meters
  • Cost limits: A £15,000 per property cap is proposed, with funding available through existing schemes. An affordability exemption could reduce this to £10,000 based on rent levels or council tax band
  • 2030 deadline: All rented homes must meet the new standard by 2030. Properties already rated A-C will remain compliant until their current EPC certificates expire.

A consultation on a revised fuel poverty strategy will also address home energy performance, affordability for low-income households, and protection from high energy prices.

Landlords slam Ed Miliband’s plans

One of Nottingham’s biggest landlords has slammed the government’s plans for EPC C targets arguing it will simply increase rents and make tenants homeless.

In a video to Ed Miliband, Mick Roberts, one of Nottingham’s largest landlords to house benefit tenants, says the EPC C plans are bonkers.

Mick explains: “What if the tenant was paying cheap rent say £200 per month below the normal rate and suddenly the landlord has got to spend £6000 just to get to EPC C. What do you think is going to happen to that rent? Come and ask the tenant if they want to save £20 per month off their gas bill, but your rent will increase by £200 per month.

“These renter groups love hearing you talking and you get their votes, but in reality, you end up making their lives worse! Mick warns the EPC C changes will leave tenants homeless. Go after the bad landlords that are charging top whack and don’t fix their boiler. Leave alone the private tenants that haven’t got a problem. You say you’ve listened to tenants. You haven’t. You’ve only listened to the ones with problems. You say you have the backing of tenants.

“You don’t have my tenants’ backing. When are you coming to talk to them? They don’t contact you because they’re happy with how things are. Stop interfering with their lives. Ed, every time you talk, you make more tenants homeless.”

Watch Mick’s Roberts full video to Ed Milband below:

Landlords need a realistic plan

Ben Beadle, the chief executive of the National Residential Landlords Association, said: “We all want to see rented homes as energy efficient as possible, but that will require a realistic plan to achieve this.

“The chronic shortage of tradespeople to carry out energy efficiency works needs to be addressed, alongside a targeted financial package to support investments in the work required as called for by the Committee on Fuel Poverty and Citizens Advice.”

He added: “Importantly, a realistic timetable is needed if the 2.5 million private rented homes, which will not currently meet the government’s proposed standards, are to be improved.”

Slashing energy bills for working people

Deputy Prime Minister and housing secretary, Angela Rayner, said: “For far too long we have seen too many tenants plagued by shoddy and poor conditions in their homes and this government is taking swift action to right the wrongs of the past.

“Through our Plan for Change we are driving up housing standards, improving quality of life, and slashing energy bills for working people and families.

“Today is just one of many steps we are taking to deliver on our promise to transform the lives of millions of renters across the country, so families can put down roots and raise their children in secure and healthy homes.”

Energy secretary Ed Miliband said: “For years tenants have been abandoned and forgotten as opportunities to deliver warm homes and lower energy bills have been disregarded and ignored.

“As part of our Plan for Change, these new changes could save renters £240 a year by raising the efficiency of homes to cut the cost of bills.

“These plans will also make sure that all private landlords are investing in their properties, building on the good work of many to upgrade their homes to Energy Performance Certificate C or higher already.”


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Comments

  • Member Since January 2024 - Comments: 341

    3:14 PM, 10th February 2025, About 1 year ago

    Reply to the comment left by Beaver at 10/02/2025 – 13:10
    “if you are a small portfolio landlord and the sum total of all your gross income exceeds £50K per annum then you cannot offset your finance costs. (If your income is below £50K per annum you get a tax credit for the finance costs).”

    ……not quite correct, you get tax relief at 20% for interest costs, but not at higher rates.

  • Member Since May 2018 - Comments: 1999

    3:52 PM, 10th February 2025, About 1 year ago

    Reply to the comment left by Ryan Stevens at 10/02/2025 – 15:14
    True….it’s complicated…exceed the £50K limit and you have to pay 40% or above. A limited company pays 19% corporation tax.

    If you are a small portfolio landlord and unable to claim that your business is a “significant undertaking” then you cannot incorporate your business by claiming rollover relief. You face a higher tax charge than an incorporated business and if you want to avoid being disadvantaged then you have to allow a margin to service the extra finance and an additional margin to service the extra tax. Probably something else to avoid the extra risk if the increased costs result in you having a higher LTV on your property (installation of photovoltaics for example does not add value to your property).

  • Member Since May 2018 - Comments: 1999

    4:30 PM, 10th February 2025, About 1 year ago

    On reflection there will be quite a few people on here who don’t understand limited companies. A limited company can offset all of its finance costs. You can find a reasonable summary of that here:

    https://fixedfeetaxreturn.co.uk/what-are-the-allowable-expenses-against-rental-income/#:~:text=Those%20in%20the%20higher%20tax,limited%20companies%20than%20for%20individuals.

  • Member Since January 2024 - Comments: 341

    5:15 PM, 10th February 2025, About 1 year ago

    Reply to the comment left by Beaver at 10/02/2025 – 16:30
    This is actually a general summary for Self Assessment, rather than for a limited company.

  • Member Since October 2024 - Comments: 188

    5:34 PM, 10th February 2025, About 1 year ago

    Reply to the comment left by Steve Masters at 07/02/2025 – 10:49
    I agree wholeheartedly, the government needs to pay for the tenants saving on fuel of about £200 to £240 per year.
    Social housing and owner occupier needs warm homes too.

  • Member Since June 2013 - Comments: 3237 - Articles: 81

    5:39 AM, 11th February 2025, About 1 year ago

    Reply to the comment left by Beaver at 10/02/2025 – 11:01
    Beaver,

    I’ve been telling these Grant people this for years. They say u got to have tenant in there to get the grant. I say u can’t do this work with tenant there.
    At no point do Govt at top come ask us on ground how it works in practice.

  • Member Since June 2013 - Comments: 3237 - Articles: 81

    5:42 AM, 11th February 2025, About 1 year ago

    On this subject people:
    I have a contact who get u from EPC D to C without the humongous cost these assessors are telling you, very cheap to work it out for u, does it more for passion, than money. I’ve spoke to him & knows his stuff:
    James Tanner
    02033255066
    http://www.jtannerproperties.co.uk

  • Member Since May 2018 - Comments: 1999

    9:58 AM, 11th February 2025, About 1 year ago

    Reply to the comment left by Ryan Stevens at 10/02/2025 – 17:15
    I know. The point is that if you are a small portfolio landlord you are being penalised. If your income edges over the £50K limit you will be penalised. If you are already over the £50k limit and you need to raise finance to do EPC upgrades you will be penalised for that as well because you can’t offset your finance costs but a limited company can.

  • Member Since April 2017 - Comments: 139

    8:32 AM, 18th February 2025, About 1 year ago

    Socialism only hurts the poor, legislation and Tax only destroy industries….
    This government is doomed to even higher debts, less tax collection and increased poverty and falling living standards. Because it puts it’s narcissism a head of reality

  • Member Since January 2023 - Comments: 142

    12:24 AM, 27th February 2025, About 1 year ago

    Reply to the comment left by Steve Masters at 07/02/2025 – 10:49
    the tax payer cannot and should not pay for upgrades to private sector housing. Government approved contractors all add a lot to their rates because they know people have to use them for grants and so forth. In my view allowing a more generous regime for writing off energy improvements is the way to go. In any event there are many homes which wont get to a C unless the tenants were to be dispossessed for works done to insulate the external walls. This is not a cheap job, probably rather more than £10K per house allowing for lost rent/voids etc

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