Tenant organisation criticises £15k EPC cost cap and calls for two-year rent freeze

Tenant organisation criticises £15k EPC cost cap and calls for two-year rent freeze

EPC graph, expensive text and various tools
12:03 AM, 16th April 2025, 12 months ago 19

A tenant organisation has slammed the proposed £15,000 cost cap for landlords making energy-efficiency improvements and instead calls for a TWO-year freeze on rents after renovation works have taken place.

The government is currently running a consultation on EPCs, and one of the proposals includes introducing a £15,000 cap per property for energy-efficiency improvements. Landlords would also be able to register an exemption if the required work would take them over this amount.

However, tenant organisation ACORN argues landlords should not be allowed an exemption, and if a landlord has accessed grants to help with energy-efficiency improvements, the freeze on rent increases should be even longer.

The news comes after Ed Miliband, Energy Secretary, announced all private rented sector properties will need to meet EPC C targets by 2030 and 2028 for new tenancies.

Not in favour of a cost cap

In response to the consultation, ACORN claim the cost cap will allow some landlords to avoid making necessary improvements

ACORN said: “We are not in favour of a cost cap. Most properties will be able to be renovated to the correct standard for much less than £15,000, but for those tenants living in homes that need serious work done it is unfair that they should continue to have to live in substandard conditions because the work would cost more than £15,000.”

However, ACORN says if a cost cap did exist then landlords should be required to meet the full £15,000 contribution themselves.

ACORN adds: “If the cost cap does exist, then we would support the government’s £15,000 figure as a minimum, but think this should rise with inflation and that the £15,000 should be the total landlord contribution, and any money received via grants should not be included.”

No affordability exemption

ACORN adds landlords should not be allowed an affordability exemption, as they claim it will create a “two-tiered system” and also claim landlords can sell if they can’t afford improvements.

ACORN said: “There should not be an affordability exemption as this will lead to a two-tier system where tenants on a lower income or in lower house price value areas would have worse standards.

“Every tenant should be able to expect the same standards and there should not be a postcode lottery. The project to lift tenants out of fuel poverty and decarbonise homes is more important than safeguarding landlord profits – landlords are able to sell if they do not want to make the investment.”

Freeze on rents for two years after renovation has taken place

Elsewhere in their response to the government’s EPC consultation, ACORN says landlords should NOT be allowed to raise rents following energy-efficiency upgrades.

ACORN said: “We are calling for a freeze on rents for two years after a renovation has taken place, and a moratorium on no-fault eviction grounds. If a landlord had accessed public grants to help with the works, the freeze on rent increases and no fault evictions should be longer so that the landlord cannot capture the value of that public money for profit.

“Tenants will be much more amenable to these works taking place if they feel secure in their tenancy.

“We also want the government to produce guidance on how the renovation process should work.”

Landlords should find accommodation for tenants during renovation works

ACORN also says landlords should give tenants plenty of notice before any energy-efficiency work begins and should find suitable accommodation for tenants during renovation works.

ACORN adds: “Tenants should be given a few months notice of the intention to renovate. Landlords should negotiate with tenants on when the works should take place to avoid exams, religious holidays, big life events, surgery etc.

“If tenants will be required to relocate for the duration of the works then somewhere convenient for them needs to be found that allows them to access work, school, medical appointments; that takes into account parking and public transport. Tenants should expect their home to be like for like when they move back in, i.e. No rooms divided.

“Any planned changes outside of energy efficiency measures should be communicated with the tenant. Tenants should have the right to visit the home during the works if they need to. The tenant should not have to pay for the bills during this period.”

A new EPC system

The way EPCs are measured could change as soon as next year, as a new system based on updated metrics is expected to be introduced.

In response, ACORN claim all should get a new EPC within a year of a new system being introduced.

The tenant organisation said: “Everyone should need to get a new EPC within a year of the new system coming in to monitor this properly.

“Further, if a home is given an EPC C on the old metrics in late 2025, that will not expire until 2035. We know that the new EPC metrics will be much more comprehensive and are likely to produce a different rating than the old metrics. We don’t want to risk tenants potentially having to live below standard for 10 years.”

The government’s consultation on EPCs ends on the 2nd May and landlords can fill out the consultation by clicking here


Share This Article

Comments

  • Member Since December 2023 - Comments: 1574

    9:55 AM, 16th April 2025, About 12 months ago

    My D rated property is valued at £90k.

    If I need to spend £15k to make it to an EPC Rating C, I have two choices.

    1. Spend £15k and increase rent by 17%.

    2. Gain vacant possession and sell.

    The tenant would prefer a lower rent and to avoid eviction.

    I don’t care either way.

  • Member Since January 2015 - Comments: 15

    10:25 AM, 16th April 2025, About 12 months ago

    Nobody really cares about the EPC system. I am having all my properties assessed now, any that are D or below which will be all of them will leave me in a situation to sell them. My 2 bed terraced houses would have a market rent of £850 atm, i have tenants who are long term happy in their home paying £650, i am also happy and not chasing the top rent. So some idiot wants me to spend £150k on my 10 houses? At 59 there is no return on the investment made. The tenant will save less that £200 year in fuel cost but rent would have to increase to cover the investment. Who is dreaming this up. Why is it just landlords being affected? If this is a ‘green’ issue it should be forced on councils, housing associations and private house owners….that wouldn’t suit the agenda or be affordable would it. Stupid

  • Member Since January 2016 - Comments: 50 - Articles: 1

    10:30 AM, 16th April 2025, About 12 months ago

    Reply to the comment left by andrew sheppard at 16/04/2025 – 10:25
    Andrew – personally I suspect down the line the epc rating requirements system will apply also to owner occupiers after all they currently have to get one if they sell their house. Plus I believe I did read some report that suggested they should be but about 5 years after landlords, So all those owner occupiers laughing at the landlords won’t be laughing soon enough.

  • Member Since January 2024 - Comments: 342

    10:56 AM, 16th April 2025, About 12 months ago

    Well done ACORN, with your wishlist the amount of PRS properties will probably reduce by 50%, landlords will sell in droves and invest their hard earned money elsewhere..

  • Member Since November 2020 - Comments: 69

    11:03 AM, 16th April 2025, About 12 months ago

    Thought April Fool’s Day was past and gone!
    Are ACORN seriously suggesting the landlord also pays for all the re-location costs and utilities during a renovation?
    They, Shelter and other tenant bodies simply don’t have a clue about being in business, which you are effectively, even with a single BTL. When is someone influential going to applaud property owners who provide accommodation? A mindset paradigm shift is urgently needed by Matthew Pennycock and the government.
    Like Cider Drinker says, you could be required to spend 20% of a property’s value in some areas. A 1000 year return on investment/ROI at best!!
    It’s a complete joke, especially when we are singled out like this. Abandon it, or require it of all residential dwellings at the same time, maybe in 2035 to align with new vehicle legislation changes.

  • Member Since March 2022 - Comments: 363

    11:11 AM, 16th April 2025, About 12 months ago

    The Turkeys are voting for Christmas. Don’t they follow what’s happening? Just look at some of today’s 118 headlines “PRS crisis deepens as landlords increasingly sell up” and “UK rents and house prices surge in 2025-ONS” Plus of course the regular article encouraging landlords to sell up like todays “Landlord Strategy Alert: Act Now Before Renters’ Rights Bill Transforms the PRS”
    Most Houses in the UK are rated “D” these will already have insulation, double glazing, new doors ,low energy bulbs a smart meter and central heating systems with programmable thermostats”. Yet for ACORN these properties are rated as “substandard”. You do not see owner-occupiers rushing out to upgrade EPC’s, they are sensible, and can’t justify borrowing thousands of pounds to save a few hundred pounds a year.
    If ACORN think finding good quality, affordable, rented property is difficult now with just the threat of the RRB, you ain’t seen nothing yet.

  • Member Since July 2013 - Comments: 1996 - Articles: 21

    11:12 AM, 16th April 2025, About 12 months ago

    If a property with an EPC rating of D at 67 is “sub-standard”, how does raising the rating by 2 points suddenly make it OK? The work may have no effect on reducing heating costs or improving amenity.
    The likes of ACORN are realising that if landlords are required to spend £15,000 or more to produce a saving of £15 to £20 a month, there will be a rise in rents.
    They also adopt the Socialist approach that throwing someone else’s money at a problem will solve that problem. Many older houses cannot be upgraded with a tenant in situ. Forget about avoiding exams and religious holidays, it may be necessary to obtain vacant possession and to put the tenant’s furniture and belongings into storage to do work. If sub-floor and internal wall insulation is required, this will mean replacing all carpets, replacing cornices, moving light switches and electrical sockets and complete redecoration.

    Tenants will have to find accommodation elsewhere for the duration (and the timescale cannot be guaranteed). ACORN do not care if it costs £50,000 to upgrade a £100,000 house. They do not care that the return on investment may be 1% (meaning the landlord will never get his money back unless he puts the rent up significantly.)
    Thankfully, Pennycook and Miliband are not (yet) completely bonkers and so exemptions will be allowed. Doubtless landlords will have to spend the £15K even if it will be impossible to achieve a C rating. Rents will increase by far more than the cost saving.

  • Member Since August 2016 - Comments: 1190

    12:03 PM, 16th April 2025, About 12 months ago

    And where exactly are landlords supposed to find £15k for each property ?

  • Member Since January 2024 - Comments: 342

    12:18 PM, 16th April 2025, About 12 months ago

    Reply to the comment left by Dylan Morris at 16/04/2025 – 12:03
    This is one of life’s mysteries. I’m sure ACORN, SHELTER, et al can advise.

  • Member Since March 2022 - Comments: 363

    12:23 PM, 16th April 2025, About 12 months ago

    Reply to the comment left by Dylan Morris at 16/04/2025 – 12:03
    Dylan of course, we can afford it! According to the promoted view in the media and accepted by the Government and just about everybody else all landlords are fat cats driving around in Rollers sitting on piles of money having grown rich renting out sub-standard properties at exorbitant rents to hapless tenants who they like to randomly select for eviction just for the fun of it.

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