he activist group Generation Rent has raised concerns about taxpayer-funded insulation grants potentially “enriching private landlords” rather than delivering genuine benefits to tenants. They are calling for the government to step in and ensure that any public money spent on energy efficiency truly helps renters.
One of their key demands is for the government to introduce measures to stop landlords from raising rents after energy upgrades funded by public grants. They argue that without such protection, tenants could see the savings from improved insulation wiped out by higher rents.
Currently, the Renters Rights Bill is progressing through the House of Lords, and an amendment proposed by Green Party peer Baroness Jenny Jones seeks to address this issue. Her amendment would prevent landlords from increasing rents following publicly funded energy improvements, ensuring tenants actually see lower bills.
Generation Rent argues that this change would strike a fair balance. More landlords could afford to upgrade properties to meet the proposed Minimum Energy Efficiency Standards, while tenants wouldn’t be penalised through rising rents.
According to a statement from Generation Rent, their research suggests that “nearly four million private renters in England and Wales are regularly struggling to pay their energy bills.” This figure is significantly higher than the government’s own estimate of private renters living in fuel poverty.
The group also points to broader problems faced by renters. Their survey claims over 3.6 million tenants are living with issues such as damp and mould, and around a quarter of renters live in homes that remain cold due to poor insulation.
Additionally, nearly a third of renters have reported maintenance problems to landlords that haven’t been resolved, and one in twenty have experienced discrimination from landlords or letting agents. These figures highlight deep-seated challenges within the rental sector.
The government has committed to improving energy standards in rented homes through its Warm Homes Plan, overseen by the Department for Energy, Security and Net Zero (DESNZ). By 2030, all private rented homes in England and Wales will be required to have an Energy Efficiency Rating of C or above.
Achieving this target is no small task. Over half of private rental homes in England will need upgrades within the next five years, with some local areas facing an even steeper challenge where more than 75% of rental properties need improvements.
Data from the most recent Private Landlords Survey shows that around 47% of landlords own at least one property with an EPC rating of D or lower, suggesting significant work ahead for many landlords.
To help with the cost of these upgrades, the government has created grants for landlords renting to low-income tenants. Under the Warm Homes Local Grant scheme, landlords must sign a declaration confirming they “understand rent should not be increased as a result of upgrades” funded by the grant.
Despite this requirement, Generation Rent fears that some landlords may still sidestep these rules. They argue there is currently “no way to make sure landlords abide by this,” raising doubts about enforcement.
In a statement, a spokesperson for Generation Rent emphasised the importance of affordable, good-quality housing as the “foundation of our lives.” They highlighted that millions of renters are already struggling with mould, damp, and soaring energy bills, often facing impossible choices between heating and other essential expenses.
They welcomed the government’s efforts to tackle fuel poverty but warned that without proper safeguards, landlords could still raise rents, undermining the scheme’s purpose. In some cases, landlords have reportedly evicted tenants after publicly funded upgrades, hoping to re-let at higher prices.
Baroness Jenny Jones echoed these concerns, saying she fears a “good policy on energy efficiency” could end up harming tenants if safeguards aren’t introduced. While landlords benefit from grants and property upgrades, tenants may see no improvement in their financial situation, despite the disruption caused by works.
She concluded by highlighting that “the only people who don’t get a guaranteed better life are the poor tenants,” even though they bear the brunt of building works and live with uncertainty over future rent increases.
This debate adds another layer to the broader question of fairness in housing policy, as the government balances environmental goals with tenants’ right to affordable, secure homes. Whether further amendments will be added to the Renters Rights Bill remains to be seen, but Generation Rent and supporting peers continue to push for stronger protections.
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