Why Ed Miliband’s Warm Homes Plan is hot air for landlords

Our glorious energy secretary, Ed Miliband, stood on a rooftop surrounded by solar panels this week, declaring the affordability crisis is the main worry for families. Then he unveiled the Warm Homes Plan and, I’m guessing, most private landlords across the country watched in disbelief.

The lunatic’s scheme demands that every rented property hit the minimum EPC band of C by October 2030. Just like that!

Labour has dropped the old 2028 cutoff for fresh tenancies, and they’ve also cut the cost cap landlords must cover themselves.

EPC will decimate the PRS

This government of clowns, liars, chancers and na’er-do-wells, still doesn’t understand that the EPC debacle will decimate rented housing stock levels in this country.

Older buildings, such as Victorian terraces and flats, dominate the sector but upgrading these homes is far from easy.

Internal insulation for older homes will trap moisture, so damp appears within years – just in time for Awaab’s Law to be in full effect.

We could spend thousands and still not meet the EPC C rating while damaging the fabric of a house.

Since returns sit at around 5% – 8% on average, there are lots of landlords looking realistically at seeing two years (or more) of profits being wiped out with the £10,000 cap.

Lenders add EPC pressure

Along with the demand feeling like a punishment, we also see lenders adding to the pressure by insisting on loans only for A-C properties.

If you’ve got a property at D or E, then good luck remortgaging before 2030. It will be a nightmare.

On social media, landlords vented frustration in impressive, old-fashioned British ways.

Among those saying that Miliband is a zealot chasing unrealistic Net Zero goals, others predicted a mass exit from the sector.

If Labour’s ham-fisted attempts at undermining landlords with the Renters’ Rights Act and the 2% tax increase on profits don’t hurt, then EPC will.

If your property already meets the criteria, then I’m genuinely pleased for you but there are going to be some difficult conversations ahead for many landlords. Mainly with a disbelieving accountant.

Imagine trying to upgrade a property and then the tenant stops paying rent and it takes many months to get possession.

Can you imagine how soul destroying that will be? Thousands spent upgrading, thousands down the drain on rent and thousands wasted on court processes.

Heat pumps and solar panels

And, heaven help me, the barmy plan pushes heat pumps and solar panels onto the sector.

No one mentions that electricity prices in Britain have soared 262% since 2004 and we pay among the highest rates worldwide.

Heat pumps look efficient on paper, but the power costs erase the savings. Plus, gas boilers are still much cheaper to run.

Maintenance adds another layer since servicing and spare parts for a heat pump cost far more than gas systems.

Solar panels carry their own irony, but Miliband won’t address this.

Two-thirds of what we use will arrive from China so taxpayers will fund imports that enrich foreign manufacturers.

That’s hardly the boost to British industry ministers would wish for.

Angry PRS landlords

The end result is predictable as more landlords quit so that fewer homes remain in the PRS.

Rents will stay high and Labour will declare victory by massaging the numbers.

It shouldn’t do, but October 2030 feels far away and a policy like this rarely dies.

The government wants greener homes, cheaper bills and fewer landlords – at least one of those wishes is going to come true.

In the end, the only thing getting truly heated is the anger among landlords forced to bankroll someone else’s green dream.

Idiots.

Until next time,

The Landlord Crusader