Labour has confirmed that landlords will be permitted to pass the cost of mandatory Energy Performance Certificate (EPC) upgrades onto tenants. According to a report by the Daily Telegraph, this decision could lead to renters facing additional charges of up to £4,000 a year.
This clarification comes despite earlier reassurances from Energy Secretary Ed Miliband, who had previously suggested that landlords would not raise rents to cover the cost of improving their properties’ energy efficiency. His statement was intended to ease concerns about the financial burden falling on tenants.
However, a government minister has now stated that landlords may indeed have a legal basis to request “higher market rents” in light of the required improvements. This has prompted growing concern among both renters and housing advocates.
The proposed upgrades are part of Labour’s broader strategy to achieve net zero emissions. As part of this plan, all rental homes in England and Wales must meet a minimum EPC rating of C by the year 2030. This regulation is aimed at improving energy efficiency and reducing household emissions.
Officials argue that these changes will lead to long-term financial benefits for tenants. The government claims that improved insulation and energy-saving measures could save renters an average of £240 annually on energy bills.
Despite these potential savings, critics are warning that the immediate impact on rents could be far more significant. The Conservative Party, in particular, has voiced strong concerns about the unintended consequences of the EPC upgrade requirements.
According to their estimates, landlords might respond by raising annual rents by as much as £4,000, especially for older homes that will be more expensive to bring up to standard. Such increases could place a heavy strain on tenants already struggling with the cost of living.
The Conservatives argue that while energy efficiency is important, the transition must be balanced against affordability and fairness for tenants. They worry that pushing through costly upgrades too quickly will result in a surge of rent rises that many households simply cannot afford.
Landlord groups have also warned that the policy could lead to reduced availability of rental homes. Some property owners may opt to leave the rental market altogether if the financial and regulatory pressures become too great.
Tenants’ rights organisations are now calling for greater clarity and safeguards to prevent landlords from using the new rules as an excuse to impose excessive rent increases. They are urging the government to put protections in place to ensure that renters are not unfairly penalised.
As the debate continues, it remains to be seen how Labour will address these concerns while keeping its net zero commitments on track. The situation highlights the delicate balance between environmental targets and housing affordability.
Landlords can legally increase rent
Despite Energy Secretary Ed Miliband’s earlier assurances that previous improvements to energy standards had not resulted in rent increases, there now appears to be a shift in tone from the government.
Justice Minister Sarah Sackman has confirmed during a recent session in Parliament that landlords are, in fact, allowed to factor in the cost of improving a property’s Energy Performance Certificate (EPC) rating when setting new rent levels.
This confirmation came in response to a question posed by Kevin Hollinrake, the Shadow Housing Secretary. He had asked for clarification on whether landlords could legally raise rents if challenged by tenants in court.
Ms Sackman stated that the expense of upgrading a property’s EPC rating is considered a “material consideration.” This means that in certain cases, the cost of those improvements may justify an increase in rent, especially when determining what qualifies as a ‘higher market rent’.
Her comments suggest that there is now a legal basis for landlords to reflect energy upgrade expenses in their rental pricing, provided it can be supported in specific circumstances.
The statement adds weight to growing concerns among tenant groups and housing campaigners, who fear that energy efficiency targets may come with unintended financial consequences for renters.
While the long-term goal remains reducing energy bills and improving home standards, the path toward achieving it may come at a cost for those currently renting. The balance between environmental policy and housing affordability continues to stir debate.
‘Labour’s war on landlords’
The Conservative Party has responded strongly to recent comments from the government, warning that Labour’s green energy policies could lead to significant rent hikes for tenants across the country.
Shadow Housing Secretary Kevin Hollinrake criticised the implications of Labour’s approach, particularly the confirmation that landlords can raise rents to cover the cost of energy efficiency upgrades. Speaking to The Telegraph, he expressed concern over the financial impact this may have on ordinary families.
Hollinrake said: “Red Ed promised to reduce everyone’s bills, but his mad dash to net zero is picking people’s pockets.” His statement highlights a growing fear among Conservative MPs that the push for environmental reform is coming at the expense of affordability.
He argued that far from easing the cost of living, Labour’s policies could end up making it worse. “Not content with sending bills skyrocketing, hardworking families’ rents are now in his crosshairs,” he added, referring to the potential knock-on effects of EPC-related rent increases.
The Conservative MP went on to accuse Labour of unfairly targeting property owners. In doing so, he claimed, they are ultimately hurting renters more than anyone else. “Maybe this confession will make him finally realise that Labour’s war on landlords just leaves renters worse off,” he said.
Hollinrake also used the opportunity to renew his party’s call for a change of course. He urged Labour to abandon its target of achieving net zero by 2050, arguing that the goal, though well-intentioned, is being pursued at too great a cost.
According to him, unless the government acts swiftly to reconsider its current strategy, the burden on working families and the middle classes will only grow. “He needs to heed our calls to abandon net zero by 2050 and fast,” he warned.
Describing the current approach as an “eco cult,” Hollinrake suggested that Labour’s environmental agenda had become too extreme and disconnected from the economic realities faced by everyday people.
His comments reflect a broader political divide on climate policy and housing, with the Conservatives framing themselves as protectors of affordability and common sense in contrast to Labour’s more aggressive green agenda.
This latest exchange marks a significant moment in the ongoing debate over how to balance environmental responsibility with financial stability for both landlords and renters.
As the general election draws nearer, issues like energy costs, housing, and green legislation are expected to remain key battlegrounds, particularly among voters in Middle England.
Help for landlords
Ed Miliband has continued to defend Labour’s proposed energy efficiency policies, particularly the requirement for landlords to upgrade their properties’ Energy Performance Certificate (EPC) ratings by 2030. He has emphasised that there is government support available to ease the financial pressure these changes may bring.
In a radio interview with LBC back in February, Mr Miliband highlighted several schemes designed to support landlords. These include local authority grants and the Boiler Upgrade Scheme, both of which aim to make it easier and more affordable to improve the energy performance of homes.
“There is some government help, and we’re looking at what more can be provided,” he stated. Mr Miliband also pushed back against suggestions that the new rules would cause rent hikes. “When this was done before with a less exacting standard, we didn’t see rent increases, and half of landlords already do this,” he explained.
However, not everyone in the property sector shares his confidence. Ben Beadle, the Chief Executive of the National Residential Landlords Association (NRLA), has called for a more pragmatic and realistic approach to implementation.
Mr Beadle stressed the practical challenges landlords are facing. He pointed out that there is a nationwide shortage of skilled tradespeople, which may delay or complicate efforts to carry out the necessary works.
He also underlined the importance of targeted financial assistance, particularly for landlords with older housing stock or limited capital. Without meaningful support, he warned that compliance may be difficult or unfeasible for many.
Meanwhile, Rob Wall, Assistant Director at the British Property Federation, added his concerns to the growing debate. He described the 2030 target as “challenging” and urged the government to adopt a “gentler trajectory” to give landlords and developers more time to prepare and adapt.
Mr Wall argued that while the goal of reducing emissions is important, the route to achieving it must also be manageable and fair. Sudden or overly ambitious deadlines could strain the sector and potentially reduce the number of available rental properties.
In response to these concerns, a spokesperson from the Department for Energy Security and Net Zero reiterated the government’s commitment to improving housing standards. “Everyone deserves to live in a warm, comfortable home,” they said.
The department also noted that it had recently consulted on plans requiring private landlords to meet higher energy performance standards. These measures, they said, are intended to make homes cheaper to heat and more energy efficient in the long term.
As discussions continue, it remains clear that while the intention behind the policy is widely supported, the implementation timeline and financial implications are proving to be points of contention.
Download NOW
4 Simple Steps To Becoming Wealthy Through Property