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
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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
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Member Since September 2018 - Comments: 3508 - Articles: 5
2:43 PM, 13th June 2025, About 10 months ago
in a nutshell then Millibrain – not getting to a C level property in 2030 is deemed far more detrimental than actually housing someone?
Member Since September 2018 - Comments: 3508 - Articles: 5
2:53 PM, 13th June 2025, About 10 months ago
everyone seems to forget. If you explain to T the cost for the LL to carry out the work will be £X but that means the increase on the rent will be £X, how many T’s are going to agree exactly?
OK it might only be a 5 year exemption or until they move, but where exactly are they going to move to if your rent is just below market rate?
Member Since September 2024 - Comments: 95
3:02 PM, 13th June 2025, About 10 months ago
Reply to the comment left by Beaver at 13/06/2025 – 14:11
Not exactly. And bear in mind we’re discussing both existing and potential legislation.
The existing situation is here:
https://www.gov.uk/guidance/domestic-private-rented-property-minimum-energy-efficiency-standard-landlord-guidance#wall-insulation
There is no requirement to spend up to £3.5k, only that you have done everything detailed on your EPC certificate below that cost. You can then gain an exemption for five years. After that five year period you can then apply for another one, etc. Tha is for a Class E property.
The proposal is to include class D properties and for the £3.5k to be raised, possibly to £15k, but until the legislation is passed there is no point trying to comply.
Consider the legislation wrt Brexit that some businesses complied with, hoping to gain a competitive advantage, only to have the legislation repeatedly delayed until finally it was recently scrapped.
In 2030 the government will have a choice: water down the legislation, or face thousands of landlords being forced to evict tenants, who will then have to be housed at the taxpayer’s expense, in expensive temporary accommodation.
2030 is currently the date we have to decide whether we will do anything or whether we will sell up. There is no need to panic today.
In the meantime, whenever a tenant moves out, you should consider installing working tenants who are on Tax Credits. In this case the government will fund the necessary improvements.
Member Since May 2018 - Comments: 1999
3:05 PM, 13th June 2025, About 10 months ago
Reply to the comment left by Reluctant Landlord at 13/06/2025 – 14:53
My tenants have never asked me FOR this…and they’ve never asked me ABOUT this.
I have looked at EPC upgrades in the past when the [conservative] government has mooted that I wouldn’t be able to let out my property if I didn’t move it from band D to C. One of the changes I made historically could have helped towards the cost of moving from band C to D but because I made the investment before the period over which ‘investments’ were being included in the calculation it didn’t count. So what that taught me was, don’t spend any money on this until you have to. As far as I can tell I can get an exemption anyway and even if I can’t, just before the point when I would be stopped from renting the property I can evict the tenants anyway in order to do the works.
Member Since May 2018 - Comments: 1999
3:07 PM, 13th June 2025, About 10 months ago
Reply to the comment left by Steve Rose at 13/06/2025 – 15:02
Thank you for the explanation. I’m happy to be educated on this.
I note: “The proposal is to include class D properties and for the £3.5k to be raised, possibly to £15k, but until the legislation is passed there is no point trying to comply.”
Member Since February 2014 - Comments: 43
3:57 PM, 13th June 2025, About 10 months ago
Reply to the comment left by Jo Westlake at 13/06/2025 – 10:31
Plus the appreciation in value of the property over the coming years 🤞minus tax 👎
Member Since June 2013 - Comments: 3237 - Articles: 81
7:20 PM, 13th June 2025, About 10 months ago
Reply to the comment left by Reluctant Landlord at 13/06/2025 – 14:43
Ha ha Great words Reluctant
in a nutshell then Millibrain – not getting to a C level property in 2030 is deemed far more detrimental than actually housing someone?
Member Since May 2024 - Comments: 204
7:34 PM, 13th June 2025, About 10 months ago
Reply to the comment left by Jo Westlake at 13/06/2025 – 10:31
Quote: (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).
100% correct Jo, Most of my houses are in Yorkshire, where rents are quite low but I have now all but 1 house with a new 10 year EPC C, the last 1 is a D.
I’ve already tried to sell it to the tenants but they can not afford it.
I’m not paying 3 years rental income from the house to get it to a C, under current rules it needs external wall insulation or a cheaper option, solar panels.
I’d rather just sell it and invest the money. Makes more sense to me.
15k upgrades per house may work for someone in London, but it does not work for houses in Yorkshire
Member Since May 2024 - Comments: 204
8:21 PM, 13th June 2025, About 10 months ago
Reply to the comment left by Suspicious Steve at 13/06/2025 – 11:28
I tried to apply for an ECO4 grant for my sisters house as it’s currently an E. (she owns it with no mortgage)
She earns less than 35k a year but probably due to post code it was rejected.
Member Since June 2025 - Comments: 2
3:31 AM, 14th June 2025, About 10 months ago
Reply to the comment left by David100 at 13/06/2025 – 10:48
That will only take 40 years for it to break even if the rent goes up £200 a year to cover the outlay.
.gov says only help for loft insulation for example tenant needs to be receiving benefits or have a household income of less than £31 k.