Landlords should foot ‘significant’ part of energy efficiency bill – Miliband

Landlords should foot a “significant” amount of the bill to meet energy efficiency standards outlined in Government proposals, Ed Miliband has said.

Under the plans put out for consultation, all private landlords in England and Wales will pay a maximum £15,000 cap to meet energy performance certificate (EPC) C or above by the end of the decade.

The Government says the proposals could save renters £240 a year on average on their energy bills, and lift up to half a million households out of fuel poverty, as they will not have to spend so much heating cold, draughty homes.

Landlords would not have to spend more than £15,000 and there is potential for a lower £10,000 cap if renters are charged lower rents or homes are in a lower council tax band under the plans.

EPC E is currently the required level.

Landlords have said a “realistic timetable” is needed to meet the higher rating after the Government announcement.

Energy Secretary Mr Miliband told BBC Breakfast on Friday that there are boiler upgrade and local grant schemes for support, but added: “I think landlords are going to have to foot at least some significant part of this bill.

“We think that’s fair and right to ask landlords to do that.”

He said that when standards were introduced previously, “landlords obviously stepped up and tenants benefited”.

Officials pointed to support for heat pumps from the boiler upgrade scheme and the Warm Homes: Local Grant programme, which will provide funding for measures including insulation, solar panels and air source heat pumps.

And with 48% of rented properties already meeting the EPC C grade, the Government wants to see the standard introduced across the board, and believes the move will not lead to increased rents for tenants.

It is estimated that the average cost to landlords of complying with the proposals will be £6,100 to £6,800 by 2030.

Previous proposals requiring landlords to meet EPC C standards for private rented homes by 2028 were axed by then prime minister Rishi Sunak, when he watered down a series of green policies in September 2023.

Then the move was welcomed by landlords, but drew criticism that it was locking in tenants to years of higher bills.

Announcing the new consultation on Friday, 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.”

Mr Miliband said the plans would help tenants who have for years been “abandoned and forgotten”, as opportunities to deliver warm homes and lower energy bills “have been disregarded and ignored.”

New energy performance certificates are also planned, but homes that are already rated A-C under the current system will be considered compliant until they expire, the Government said.

But the National Residential Landlords Association (NRLA) said a “realistic plan” was needed to achieve the higher rating and warned of a “chronic shortage” of tradespeople to carry out the necessary works.

Ben Beadle, chief executive of the 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.

“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.”

Acting shadow energy secretary Andrew Bowie said: “This misguided announcement will do nothing to lower energy bills in this country.

“On top of the warnings that Angela Rayner is nowhere near meeting her house building targets, and her Renters’ Rights Bill reducing supply and raising rents, Labour are proposing burdening landlords with heavy costs, which will inevitably be passed on to renters, instead of working to deliver cheaper and more secure energy for this country.”