The disconnect between tenant groups and landlords is shameful

Sometimes a story lands that shows the true colours of critics and this week Generation Rent (yes, them again) say that landlords shouldn’t put rents up when upgrading a property’s EPC rating.

They were targeting those very few landlords who manage to access public grants but I’m laying good money right now that tenant groups will demand that the EPC improvement bill is one that it is borne by landlords alone and not tenants.

The statement lays bare a profound disconnect between tenant advocacy groups and the realities faced by those operating in the PRS.

For me, this is a classic case of well-meaning rhetoric crashing headfirst into the practicalities of running a business, and it’s time to set the record straight.

Landlords are people

Firstly, private landlords are not faceless corporations with endless reserves.

Most are small-scale operators, often managing just one or two properties, scraping by on modest margins.

The suggestion that we should absorb the cost of EPC upgrades, potentially up to £15,000 per property, a figure floated as a possible cap but it’s still uncertain, without passing on any of the costs is not just unrealistic; it’s insulting.

We aren’t operating as a charity or offering subsidised housing.

Every time tenant groups, and the government and councils add to our operating costs, there is only one guaranteed result. Tenants will be paying more.

That’s how it works in the real world of business. We can’t do things for free.

Many of us already charge rents at well below the market rate without any appreciation.

EPC bill for landlords

But let’s unpack the EPC upgrade issue. The government’s push for greener homes is laudable, but the execution is a mess.

Grants for low-income tenants are often touted as the solution but they either insufficient or inaccessible.

Even when grants are secured, they don’t always cover the full cost, leaving landlords to foot the bill.

At current rental yields, it could take 20 years to recover the cost of some EPC improvements, assuming no other expenses arise. And for what?

So the government can tick another green, ‘aren’t we doing great’ box.

The PRS is a small contributor of carbon emissions compared with industries like transport or manufacturing, yet landlords are being squeezed as if they’re the linchpin of climate change.

The disconnect deepens when you consider the economic realities. Rising costs, such as National Insurance hikes, maintenance and insurance, hit landlords just as they do any business.

You might, for example, complain about supermarket food prices going up but you pay them. You don’t demand that governments create a system so you can get free or subsidised food. The supermarkets don’t work like that.

But because landlords offer a home and are considered to be loaded, you think that rent is a special case. Not food, alcohol or your summer holidays. Just paying landlords a fee to use the home they provide.

That’s part of the disconnect, as I see it. Tenants will see food prices going up and understand that the supermarket has seen its running costs rise. They may not like it, but they understand it.

So, what’s the problem with landlords trying to cover their costs? Believe me, landlords aren’t rolling in huge profits. Most are hoping that the capital appreciation will be enough to help subsidise a pension.

Deciding to evict and sell

But you can complain and ignore the business issue – which is becoming a big problem as Labour hikes business costs and firms are packing in.

The numbers don’t add up because there’s not enough profit to be made.

That’s the issue for landlords too but rather than put someone out of work we have the horrible decision to make of selling up and asking a family to leave. No one sees how landlords struggle with this when they have decent tenants.

But more of us are choosing to do just that which means that a housing a crisis is getting worse. Rents are rising. Choice is declining.

What’s most galling is the lack of engagement. Tenant groups and policymakers rarely consult landlords before issuing edicts.

Let’s face it, landlords who house low-income tenants, often on Universal Credit, are doing society a service that corporate build-to-rent firms avoid. Yet, they’re not vilified as profiteers.

The irony is that Generation Rent’s policies would hit the poorest tenants hardest, as rent hikes or property sales disproportionately affect those least able to cope.

The PRS isn’t perfect, but it’s not the cartoon villain tenant groups paint it as.

Until MPs, councils and advocacy groups start listening to landlords, and I mean really listen, these policies will continue to backfire.

One day, we will get adults into Parliament, and we’ll look back and wonder how we allowed deluded, inexperienced politicians and activists to create housing policy that hurt the very people it was intended to help.

Until then, landlords will keep footing the bill, and tenants will keep paying the price.

Until next time,

The Landlord Crusader

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