10:27 AM, 7th February 2025, About 3 hours ago 39
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Private landlords in England will need to upgrade their properties to meet a minimum Energy Performance Certificate (EPC) rating of C by 2030, under a consultation announced by the government.
Nottingham landlord Mick Roberts has hit out at the government plans saying they ‘will simply increase rents and make tenants homeless’ – see his hard hitting video below.
This new requirement, the government says, will improve living standards for renters and reduce energy costs.
Currently, 48% of private rentals already meet this standard.
The changes will necessitate investments in insulation, double glazing, and other energy-saving measures.
The government’s consultation is inviting feedback from tenants and landlords on plans to boost living standards in the PRS and lower energy costs. Key proposals include:
A consultation on a revised fuel poverty strategy will also address home energy performance, affordability for low-income households, and protection from high energy prices.
One of Nottingham’s biggest landlords has slammed the government’s plans for EPC C targets arguing it will simply increase rents and make tenants homeless.
In a video to Ed Miliband, Mick Roberts, one of Nottingham’s largest landlords to house benefit tenants, says the EPC C plans are bonkers.
Mick explains: “What if the tenant was paying cheap rent say £200 per month below the normal rate and suddenly the landlord has got to spend £6000 just to get to EPC C. What do you think is going to happen to that rent? Come and ask the tenant if they want to save £20 per month off their gas bill, but your rent will increase by £200 per month.
“These renter groups love hearing you talking and you get their votes, but in reality, you end up making their lives worse! Mick warns the EPC C changes will leave tenants homeless. Go after the bad landlords that are charging top whack and don’t fix their boiler. Leave alone the private tenants that haven’t got a problem. You say you’ve listened to tenants. You haven’t. You’ve only listened to the ones with problems. You say you have the backing of tenants.
“You don’t have my tenants’ backing. When are you coming to talk to them? They don’t contact you because they’re happy with how things are. Stop interfering with their lives. Ed, every time you talk, you make more tenants homeless.”
Ben Beadle, the chief executive of the National Residential Landlords Association, said: “We all want to see rented homes as energy efficient as possible, but that will require a realistic plan to achieve this.
“The chronic shortage of tradespeople to carry out energy efficiency works needs to be addressed, alongside a targeted financial package to support investments in the work required as called for by the Committee on Fuel Poverty and Citizens Advice.”
He added: “Importantly, a realistic timetable is needed if the 2.5 million private rented homes, which will not currently meet the government’s proposed standards, are to be improved.”
Deputy Prime Minister and housing secretary, Angela Rayner, said: “For far too long we have seen too many tenants plagued by shoddy and poor conditions in their homes and this government is taking swift action to right the wrongs of the past.
“Through our Plan for Change we are driving up housing standards, improving quality of life, and slashing energy bills for working people and families.
“Today is just one of many steps we are taking to deliver on our promise to transform the lives of millions of renters across the country, so families can put down roots and raise their children in secure and healthy homes.”
Energy secretary Ed Miliband said: “For years tenants have been abandoned and forgotten as opportunities to deliver warm homes and lower energy bills have been disregarded and ignored.
“As part of our Plan for Change, these new changes could save renters £240 a year by raising the efficiency of homes to cut the cost of bills.
“These plans will also make sure that all private landlords are investing in their properties, building on the good work of many to upgrade their homes to Energy Performance Certificate C or higher already.”
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Neil Patterson
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Sign Up10:31 AM, 7th February 2025, About 3 hours ago
Mick Roberts for PM
Dylan Morris
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Sign Up10:41 AM, 7th February 2025, About 3 hours ago
So why doesn’t this apply to Council homes ? Are council tenants not worthy of warm energy efficient homes as well.
Ian Narbeth
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Sign Up10:43 AM, 7th February 2025, About 3 hours ago
Simple maths: £15,000 capital expenditure to save £240 a year. That's a 1.6% return on capital. It will take 62.5 years to recoup the cost and until the end of time if interest rates stay above 1.6% pa.
Even at the lower £10,000 cost, that is a 2.4% return.
The rent may not have to go up by £200 a month but all but the most modest increase in rent will wipe out any savings for tenants.
Steve Masters
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Sign Up10:49 AM, 7th February 2025, About 3 hours ago
The only way it is going to save tenants £240 is if the government pays for the work.
Dylan Morris
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Sign Up10:50 AM, 7th February 2025, About 3 hours ago
Reply to the comment left by Ian Narbeth at 07/02/2025 - 10:43And how are landlords expected to come up with £15,000 for each property, I certainly haven’t got it. All my 5 properties are C rated …… for now and I’m safe until just after 2030. But they’ll no doubt change the method of calculation. I’m not going to install bloody heat pumps and solar panels. Just haven’t got the money. I’m running round in a 12 year old car as I can’t afford a new one. Only option post 2030 will be to spend £2,000 on an eviction company to get my tenants out and sell up. That’s assuming I can convince a Judge to agree to giving me a possession order.
Beaver
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Sign Up11:08 AM, 7th February 2025, About 3 hours ago
Reply to the comment left by Ian Narbeth at 07/02/2025 - 10:43It is worse than that.
I am a small portfolio landlord not far off retirement age. My BTL is part of my retirement portfolio.
Firstly, I think that this proposed requirement does not apply to social housing and it does not apply to any principle private residence. So of course many landlords faced with a big bill will just sell and the work will not get done. This will not have any effect other than to make the supply of rental housing worse. Angela Rayner has already been told by those representing builders that she is not going to be able to supply the required housing. The labour tax changes make this worse:
https://www.express.co.uk/news/politics/1996764/angela-rayner-humiliated-house-building-rachel-reeves
In terms of how this affects small portfolio landlords like me, if I were to upgrade my principle private residence with everything that I would need to achieve a similar performance to my gas boiler this would cost me tens of thousands of pounds. I will never get the money back and there is a lot of opportunity cost in spending the money...I cannot give it to my kids to help with their education, housing, childcare or other costs.
If I do the work on my principle private residence this will increase the value of my house and Rachel Reeves will take far more tax off my children in IHT at 40%. In the meantime because electricity is taxed more than gas then through my retirement I will pay more tax on the electricity.
If I were to upgrade my BTL portfolio whilst staying within HMRC rules the works will cost far more than my annual rent, probably 3-5 times my annual rent, and I will have to finance this with extra finance. I am not permitted to deduct my finance costs so the tax system will punish me for doing this as well.
If somebody forces me to go out and get finance to do this then because the works will be very significant I will have to make my tenants homeless to do the upgrades. As I am unable to offset my finance costs from my rents when I next get tenants in the rents will have to be far higher than would otherwise be the case in order to not only service the additional borrowings, but also to cover the overage that will be taken by HMRC in extra tax. I.e. the tenants will pay.
Tenants are looking at dramatic increases in rents if this happens, and not only that, because housing costs are included in the RPI this will also affect inflation.
If this labour government, or any government, wants me to do this they need to change the tax system. Whether its my principle private residence or my BTL investment I will only be penalised for doing this.
My tenants are not asking for this. If they understood all the consequences they would not be voting for it either.
Ryan Stevens
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Sign Up11:17 AM, 7th February 2025, About 3 hours ago
It's simple. If I have to upgrade my D to a C or better I will just sell.
The flat is ground floor in an ex-council concrete block, most likely I would need to internally insulate the external walls and floor. This would be a massive job, and probably cost £30-40k and the tenants would need to be re-housed whilst it was being done.
I would be wanting to recover my costs within 5 years, would my tenants want to pay me £700 more rent a month? They have been with me 10 years, would they want to be kicked out while the work was being carried out, all for a minimal saving in energy bills?
So, if it goes ahead, I will be serving s8 notices and selling.
Dylan Morris
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Sign Up11:24 AM, 7th February 2025, About 2 hours ago
Reply to the comment left by Ryan Stevens at 07/02/2025 - 11:17
That’s assuming the freeholder will actually give you permission to do the work.
Ryan Stevens
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Sign Up11:26 AM, 7th February 2025, About 2 hours ago
Reply to the comment left by Dylan Morris at 07/02/2025 - 11:24
Indeed.
Sam B
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Sign Up11:27 AM, 7th February 2025, About 2 hours ago
Unless I have read it wrong. But a major thing not picked up on this article is the deadline is 2028 if you have new tenancies and 2030 for all tenancies. So that will make a LOT of properties have the 2028 deadline.