MPs claim EPC upgrades are no excuse for landlords to hike rents

An Early Day Motion (EDM) to prevent landlords from hiking rents following EPC upgrades has received support from Labour and Green MPs.

EDMs are mainly symbolic and rarely debated in Parliament, but Labour MP Bell Ribeiro-Addy argues that the Renters’ Rights Bill does not do enough to protect tenants from eviction or rent increases after energy efficiency improvements to a property.

Generation Rent has previously claimed landlords can easily afford EPC upgrades because they are mortgage-free.

The Labour government has proposed that all private rented properties must meet an EPC rating of C by 2030, with a 2028 deadline for new tenancies.

Protect renters from rent increases

Ms. Ribeiro-Addy, who tabled the EDM, claims the Renters’ Rights Bill fails to protect tenants from rent hikes when landlords receive government grants for energy efficiency upgrades.

Green Party co-leader Carla Denyer and Independent MP Jeremy Corbyn are among the MPs who have signed the motion.

The MPs claim that government grants for energy efficiency upgrades should be classified as contributions made by the tenant, not the landlord, to protect renters from rent increases.

The motion says: “The Renters’ Rights Bill is a positive first step in addressing the power imbalance between tenants and landlords, but does not offer sufficient protections for renters in the case of retrofitting. We are concerned that, without further protections, renters, particularly those on low incomes, will not enjoy the benefits of a warmer home and lower bills.

“We believe the government should protect renters from rent increases through classifying grants as an improvement contributed by the tenant, not the landlord, at the First-tier Tribunal rent assessment process and protect renters from eviction through introducing a protected period from eviction after a government grant is used to retrofit a privately rented property.”

Landlords spend thousands of pounds on EPC upgrades

Despite MPs’ claims, landlords spend thousands of pounds on energy-efficiency improvements, with the average cost of upgrading a sub-C rated property to a C or above in England costing more than £7,000.

According to estate agents Benham and Reeves, despite the improvement being expected to create an annual energy bill saving of £280, it would take the average landlord an astonishing 26.4 years to meet the expected annual cash savings.

The government have also rejected an amendment in the Renters’ Rights Bill which would have given renters stronger protections against rent hikes when a landlord receives a grant.

The Labour government has also seemed to confirm that landlords can raise rents to pay for EPC upgrades, with Justice Minister Sarah Sackman confirming in Parliament that landlords can legally factor in the cost of improving a property’s EPC rating when setting ‘higher market rents.’