Labour’s Net Zero mission could see landlords driving up rents to cover the hefty cost of Ed Miliband’s tough energy efficiency rules.
Under the Government’s Warm Homes Plan, privately rented homes will need to achieve an energy performance certificate rating of at least C by 2030, an extension from the previous 2028 cut-off.
Ministers insist the proposals can save renters £210 a year on average on their energy bills and lift up to half a million households out of fuel poverty.
But landlords of properties that do not meet the C rating will be expected to invest a maximum of £10,000 to bring the homes up to standard by installing eco measures, such as double glazing, heat pumps or loft and cavity wall insulation.
The Government had originally set the maximum cap at £15,000.
The cost of the programme has been estimated at £10billion to £15billion.
Critics say the scheme runs the risk of passing extra costs on to tenants, amid fears that rents could spiral. Some also argue that landlords could effectively shrink the rental market by choosing to sell up rather than spend thousands on their properties.
Shadow energy secretary Claire Coutinho said it was the ‘height of irresponsibility’ that the Government had not considered the impact of such policies on renters.
She told The Telegraph: ‘Labour’s approach to the cost of living is to impose policies that make everything more expensive, then tax the working half of the population to cover the costs.’
Labour’s Net Zero mission could see landlords driving up rents to cover the hefty cost of Ed Miliband’s tough energy efficiency rules
Changes to EPC requirements have been hanging over the sector for a number of years now.
The EPC is a rating scheme which bands properties between A and G, with an A rating being the most energy efficient and G the least.
It is estimated that 2.6 million privately rented homes have an EPC of D or below, according to the Ministry of Housing, Communities and Local Government. That equates to 60 per cent of rented homes.
At present, landlords need to ensure their property has a minimum energy performance certificate rating of E in order to let it.
An impact assessment conducted last year by The Department of Housing, Communities and Local Government, identified the possibility rents could be affected by Mr Miliband’s policy.
The impact assessment said: ‘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.
‘Landlords will likely offset some of the costs of the regulation through rental price growth.’
Officials also highlighted internal government research which suggested one in four owners would consider selling their properties if, having hiked up rents, they were unable to attract tenants within six months.
Shadow energy secretary Claire Coutinho said it was the ‘height of irresponsibility’ that Ed Miliband had not considered the impact of such policies on renters
Timothy Douglas, head of policy and campaigns at Propertymark criticised the energy efficiency crackdown for imposing ‘substantial and costly upgrades.’
Meanwhile Ben Beadle, chief executive of the National Residential Landlords Association, said there was a ‘mammoth task ahead’ for property owners to make their rental homes compliant.
A Government spokesman said: ‘The National Landlords Association has welcomed our announcement.
‘We stand by the principle that every renter has the right to a decent, safe and affordable home.
‘Our plans will ensure warmer homes for millions of renters, lift hundreds of thousands of households out of fuel poverty, and reduce energy bills by hundreds of pounds a year.
‘This is a reasonable ask of landlords, and almost half of privately rented homes already meet the standards.
‘We have carefully listened throughout the policy process, and have built-in protections, including a strict cost cap, and new and expanded exemptions.
‘That is why this policy has been welcomed as a positive step forward by both tenant and landlord groups.’
Daily Mail has contacted the Department for Energy for comment.
