Landlords warn Renters’ Rights Act will delay EPC improvements

The Renters’ Rights Act risks slowing down energy-efficiency upgrades, with more than half of landlords expected to delay or reduce spending on improvements, according to new data.

Polling by rental management app August reveals that 62% of landlords say the Act will make them spend less on property improvements, while 54% are likely to delay or cut back on energy-efficiency upgrades.

The news comes as the Housing Minister Matthew Pennycook has refused to give a clear answer on whether landlords will be able to recoup the costs of EPC upgrades.

This is a red flag for the UK’s climate ambitions

According to the data, 44% of landlords are very likely to delay energy-efficiency improvements due to high costs and financial uncertainty.

Many government EPC grants have strict criteria such as Warm Homes: Local Grant Scheme, which is only available to tenants who are on low incomes and only in certain postcodes.

Samuel Cope, founder of August, warns that without increased funding and grants for landlords, progress on greener homes will stall.

He said: “This is a red flag for the UK’s climate ambitions. You cannot legislate for higher housing standards while pushing landlords into corners financially. Without targeted support, the Renters’ Rights Act risks slowing down green upgrades across millions of homes.

“I’ve written to the Chancellor urging her to protect the quality and safety of the rental sector. If she doesn’t, we risk locking both landlords and tenants into lower-quality homes for years to come.”

Lack of support in Budget would trigger rent rises

August also reports that a lack of targeted support for landlords in the Autumn Budget would trigger further rent rises. The findings show that 97% of landlords are likely to raise rents unless the Budget eases financial pressures.

Nearly half (45%) say they are definitely likely to increase rents due to new costs that could emerge in the Autumn Budget, including media speculation about applying national insurance to rental income.

The biggest drivers behind rent increases include efforts to stay ahead of expected restrictions on rent rises (42%), rising mortgage and maintenance costs (39%), increased compliance burdens (18%), and reduced flexibility in managing tenants (12%).

Mr Cope adds: “Costs are cascading through the system and landing on tenants. I have written to the Chancellor urging her to steady financing and compliance pressures. Ignore this, and rent rises will quicken while affordability worsens. She risks unleashing rental hell upon both landlords and tenants alike.”

Property118 commercial reality check

The Renters’ Rights Act and the looming Autumn Budget are creating real uncertainty for commercially minded landlords. Energy-efficiency upgrades still matter, yet unclear cost-recovery rules and the risk of new taxes make investment decisions harder. This is not hesitation.

It is disciplined cashflow protection in a volatile policy environment. Treat this period as strategic planning time. The landlords who stay organised, documented and financially steady will be ready to move the moment policy settles.

What serious landlords should do next

Create a forward plan for EPC upgrades. Rank properties by projected EPC uplift, cost-to-benefit ratio and tenant impact. A structured plan keeps you ready to act when grant schemes or tax rules shift.

Run a financial stress test linked to the Autumn Budget. Model your next 24 months assuming different Budget outcomes, including increased compliance costs or potential changes to rental taxation. This gives you clarity before the numbers land.

Document grant eligibility for each unit. Confirm postcode-based schemes, tenant-income criteria and local authority support. Keep a file so you can move quickly if funding widens.

Reassess your rent strategy under policy pressure. Build a forecast that accounts for mortgage costs, maintenance inflation and Budget-related uncertainties. Evidence-based modelling strengthens decisions and avoids reactive rent changes.

Advantage through professionalism

Uncertain regulation rewards landlords who maintain discipline. When others pause in frustration, commercially minded operators gain ground through structure, modelling and forward planning.