Labour's Energy Efficiency Rules Spark Fears of Rent Hikes
Labour's ambitious Net Zero mission could inadvertently lead to landlords increasing rents to offset the substantial costs associated with new energy efficiency regulations. Under the Government's £15 billion Warm Homes Plan, privately rented properties must achieve a minimum Energy Performance Certificate (EPC) rating of C by 2030, extending the previous deadline from 2028.
Costs and Savings in Focus
Ministers argue that these proposals will save renters an average of £210 annually on energy bills and potentially lift up to half a million households out of fuel poverty. However, landlords with properties below the C rating face a maximum investment of £10,000 to install eco-friendly measures such as double glazing, heat pumps, or loft and cavity wall insulation. This cap has been reduced from an initial £15,000.
Critics express concern that these expenses might be passed on to tenants, leading to spiralling rent costs. There are also warnings that some landlords could opt to sell their properties rather than incur thousands in upgrades, potentially shrinking the rental market.
Political and Industry Reactions
Shadow Energy Secretary Claire Coutinho has labelled the Government's approach as the 'height of irresponsibility', accusing Labour of imposing policies that increase costs and then taxing the working population to cover them. She emphasised that the impact on renters has not been adequately considered.
The EPC system rates properties from A (most efficient) to G (least efficient), with current regulations requiring a minimum E rating for rentals. According to the Ministry of Housing, Communities and Local Government, approximately 2.6 million privately rented homes—60% of the sector—have an EPC of D or below, highlighting the scale of the challenge.
Government Assessments and Warnings
An impact assessment from the Department of Housing, Communities and Local Government last year acknowledged that landlords are likely to pass some costs onto tenants through higher rents to maintain profitability. The report stated: 'It is likely that landlords will pass through some costs of new policies to tenants in the form of higher rents – to offset those costs and maintain a degree of profit.'
Internal government research further suggested that one in four property owners might consider selling if they cannot attract tenants within six months after raising rents.
Industry Voices and Government Defence
Timothy Douglas, head of policy and campaigns at Propertymark, criticised the energy efficiency crackdown for imposing 'substantial and costly upgrades'. Ben Beadle, chief executive of the National Residential Landlords Association, described the task ahead as 'mammoth' for landlords needing to make their homes compliant.
A Government spokesman defended the plans, stating they ensure 'warmer homes for millions of renters' and reduce energy bills significantly. They noted that almost half of privately rented homes already meet the standards and highlighted protections such as the cost cap and expanded exemptions, which have been welcomed by both tenant and landlord groups.
The Daily Mail has reached out to the Department for Energy for additional comment on these developments.
