Government’s EPC targets for landlords are ‘unrealistic’ – NRLA
10 months ago | 18 comments
Tenant group claims landlords can easily afford EPC upgrades
12:01 AM, 13th June 2025, 10 months ago
82
Categories:
Generation Rent claims the majority of landlords CAN afford energy-efficiency upgrades because they are mortgage-free.
Despite the tenant group’s claim, as previously reported on Property118, energy-efficiency upgrades are hugely expensive and cost thousands of pounds, which are often then passed down onto tenants.
The tenant group welcomes the government’s commitment to improving energy-efficiency standards in the private rented sector and the announcement of the £13.2 billion funding for the Warm Homes Plan, which aims to support energy efficiency upgrades to homes.
Majority of landlords are mortgage-free, meaning they can easily afford the investment
Energy Secretary Ed Miliband has proposed that all private rented properties must meet EPC C targets by 2030, and by 2028 for new tenancies.
In a government consultation on the proposed EPC targets, it was suggested that the maximum required investment for private rented properties to meet minimum energy efficiency standards be raised to £15,000 before landlords can register for an exemption.
However, an industry body warns that this cost cap would push landlords to leave the market.
Despite this, Generation Rent claim landlords can afford the investment.
Dan Wilson, deputy chief executive of Generation Rent, said on X, formerly Twitter: “Everyone needs a good quality, affordable home. It’s the foundation of our lives. But millions of renters are living in cold homes with shocking levels of mould and damp, while they’re most likely to experience fuel poverty. These issues ripple across lives, hugely impacting renters’ mental and physical health.
“Over half of private rented homes in England fall below EPC C, and few landlords will make improvements if they don’t have to. Our analysis shows the majority of landlords are mortgage-free, meaning they can easily afford the investment needed.”
Lower bills won’t be cancelled out by higher rents
Mr Wilson adds: “It’s right the government is intervening to lift renters out of fuel poverty and reduce carbon emissions. The can has already been kicked down the road, which has been bad for renters and the environment.
“To speed things along, grants are available for landlords to make improvements, but tenants need assurance that lower bills won’t just be cancelled out by higher rents – so we need limits on how much landlords can raise the rent. This simple solution would mean renters are able to enjoy warmer homes and lower bills.”
Despite Mr Miliband’s assurances that EPC upgrades will not lead to higher rents, a government minister previously admitted that landlords can raise rents to cover the cost.
Tags:
energy efficiency funding, energy efficiency upgrades, EPC C targets, generation rent, landlord rent increases, mortgage-free landlords, Private Rented Sector, Warm Homes Plan
Comments
Have Your Say
Every day, landlords who want to influence policy and share real-world experience add their voice here. Your perspective helps keep the debate balanced.
Not a member yet? Join In Seconds
Login with
or
Related Articles
iHowz calls on government for clearer guidance as biggest EPC changes in decades come into force
10 months ago | 10 comments
Government to train thousands of retrofit workers but EPC C targets may be ‘impossible’
11 months ago | 7 comments
Member Since September 2024 - Comments: 95
10:28 AM, 13th June 2025, About 10 months ago
Reply to the comment left by Suspicious Steve at 13/06/2025 – 07:50
I don’t understand your petition to force the government to upgrade council homes.
Any increase in workload will lead to higher installation costs for private landlords.
Any additional calls on public money will reduce the amount available for the PRS.
You seem to be barking up the wrong tree.
Frankly I don’t care about the quality of council homes, I care only about the quality of my tenants.
Member Since June 2015 - Comments: 330
10:31 AM, 13th June 2025, About 10 months ago
The majority of landlords only own one or two houses so the fact they don’t have a mortgage is largely irrelevant to the majority of tenants who are housed by portfolio or corporate landlords (most of which will have mortgages).
Even if someone has invested their life savings in BTL in order to supplement their pension they are still entitled to expect an income from that money.
Let’s say they have invested £300000 in a small 3 bedroom house somewhere in the South. The rent will be roughly £1300 per month. Assuming there are never any voids that’s £15600 per year.
If their £300K was invested in a range of ISAs and stock market investments it’s reasonable to assume the annual return should be around 5%, which is £15K. So the £600 a year extra they receive in rent has to cover insurance, gas safety checks, EICR, repairs, maintenance, possibly agents fees, voids and EPC upgrades. Even an activist or Labour politician should have the ability to spot that £600 a year comes nowhere even close to covering a fraction of those expenses.
It’s not really a question of if a landlord CAN theoretically afford to make capital improvements (EPC upgrades), it’s whether it makes any financial sense to do so. In the current climate it probably makes far more sense to simply sell up.
It’s about time it was recognised that landlords aren’t charities.
Member Since September 2024 - Comments: 95
10:38 AM, 13th June 2025, About 10 months ago
Reply to the comment left by Beaver at 13/06/2025 – 10:25
“Your [the tenants] household income must usually be £36,000 a year or less. If you earn more than that, you might still be eligible if either:
you live in a certain postcode area or someone in your household is getting certain benefits”
Member Since September 2024 - Comments: 95
10:42 AM, 13th June 2025, About 10 months ago
Reply to the comment left by Jo Westlake at 13/06/2025 – 10:31
You missed out capital growth in your calculations. At a long-term average exceeding 5%, that isn’t an insignificant factor. (It is also the reason why I am still a landlord)
Member Since May 2018 - Comments: 1999
10:44 AM, 13th June 2025, About 10 months ago
Reply to the comment left by Steve Rose at 13/06/2025 – 10:38
OK. So as normal, my tenants wouldn’t be eligible for these grants. They seem happy with their band D property and their modern gas condensing boiler. Anything else that I do would only increase their cost of living, and probably also increase their tax bill.
Member Since October 2023 - Comments: 201
10:48 AM, 13th June 2025, About 10 months ago
Spend £8k of LANDLORDS money, to reduce TENANTS heating bills by 200 quid a year.
Have they stopped doing maths at private schools now?
Member Since May 2018 - Comments: 1999
10:56 AM, 13th June 2025, About 10 months ago
Reply to the comment left by David100 at 13/06/2025 – 10:48
I don’t think that it will decrease my tenants’ bills by £200 per year.
If I do everything recommended in the EPC then the electricity bill will go up unless I also install a complicated photovoltaic system, batteries etc. I would also have to evict my tenants whilst I do the works that would be required internally.
Rents will have to rise dramatically to cover the cost of the works, especially as I cannot offset the finance costs, and I think at best my tenants’ energy bills would remain static. My tenants can’t offset either their rent or their energy bills against their taxes and so all that funding the extra rent and energy bills would do is increase their requirement for earnings meaning they can’t make pension contributions to reduce their tax bills, pushing them further into the higher tax bands.
My tenants aren’t asking for this. And why would they? A gas condensing boiler is reliable and cheap to run.
Member Since September 2015 - Comments: 1013
11:01 AM, 13th June 2025, About 10 months ago
Reply to the comment left by David100 at 13/06/2025 – 10:48
The objective is to eradicate private Landlords not help Tenants or counter climate change.
Member Since June 2013 - Comments: 3237 - Articles: 81
11:02 AM, 13th June 2025, About 10 months ago
Aah right, so if I’m mortgage free, & can earn more return in bank or Investments, I just think u know what, I’ll lose money & keep house for tenant & pay 20k for his stuff to.
I’m sure that’ what George Osborne did for us in 2015 with Section 24.
Member Since September 2015 - Comments: 1013
11:03 AM, 13th June 2025, About 10 months ago
Reply to the comment left by Beaver at 13/06/2025 – 10:56
Ed Minibrain is looking at shifting (probably just adding) so called “green levy” to the cost of gas, and so drive up gas prices dramatically.