Labour’s EPC push leaves Keir Starmer facing a £28,000 home renovation bill

Labour’s plans to compel private sector landlords to meet strict energy performance certificate (EPC) targets have left Sir Keir Starmer facing a potential renovation bill of up to £28,000 for his own rental property.

Since moving into 10 Downing Street, the Prime Minister has been renting out his £2 million four-bedroom North London townhouse.

However, according to the Mail on Sunday, the property’s energy efficiency rating falls below Labour’s proposed minimum standard for landlords, requiring significant and costly upgrades.

Ability of landlords to fund upgrades

A spokesman for the National Residential Landlords Association (NRLA) told the Mail: “Upgrading to an EPC C will require a higher level of investment – and the ability of landlords to fund this will vary, particularly given the regional variability in their options to leverage finance from their property values.

“Some landlords may have to increase rents to match increased maintenance costs.”

He added: “The costs of these changes vary greatly on the type of property.

“It is also important to take into consideration how landlords are impacted by the region their properties are based in.”

NRLA research in 2021 found that in some local authority areas of the North and Midlands, the estimated costs of improving home energy are around 25% of property values.

In affluent parts of London and the South East the cost of retrofitting with heat pumps represents less than 2% of the overall property value.

Achieve an EPC rating of C

Energy Secretary Ed Miliband has announced plans for all rented properties in England to achieve an EPC rating of C or above by 2030.

Currently, only an E rating is required.

This stricter standard would necessitate improvements such as wall insulation for Mr Starmer’s property, with estimated costs ranging from £13,035 to £28,235.

Failure to comply could result in fines of up to £30,000.

Chancellor also faces similar challenges

Rachel Reeves, the Chancellor of the Exchequer, also faces similar challenges for her four-bedroom South London home which she currently rents out.

According to the newspaper, it requires loft and floor insulation and possibly solar water heating to meet the new regulations.

The estimated cost of these upgrades for Ms Reeves is between £8,400 and £13,050.

Rental properties with low EPC ratings

Other Labour frontbenchers, including Foreign Secretary David Lammy and the Secretary of State for Scotland Ian Murray, also own rental properties with low EPC ratings.

The Housing minister Rushanara Ali rents out two flats with D ratings, and will require upgrades estimated to cost between £8,850 and £21,500.

Labour has pledged to invest £6.6 billion in its ‘warm homes plan’ to support landlords with these upgrades through grants and low-interest loans.

However, concerns remain that many older properties may be unable to achieve the C rating, potentially forcing landlords to sell their properties, reducing rental availability and potentially increasing rents for tenants.

A Government spokesman told the paper: “This Government has pledged to improve energy efficiency in British homes – cutting bills, helping to lift millions out of fuel poverty and keeping households warm.”

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