The government has admitted that landlords can raise rents to pay for costly EPC upgrades.
Despite Energy Secretary Ed Miliband’s insistence that rents hadn’t increased when standards were raised during previous initiatives, Justice Minister Sarah Sackman (main image) has now said there are grounds for “higher market rents”.
Shadow Housing Secretary Kevin Hollinrake (pictured) asked her whether investment in upgrades was a material consideration allowing for a higher market rent.
In a written response, Sackman said: “A market rent decision in the first-tier tribunal is a judicial decision and expenditure on the upgrading of an EPC to a higher level of energy efficiency is a material consideration which may result, in certain circumstances, in a higher market rent being determined by the first-tier tribunal.”
Private landlords will have to ensure their properties reach a minimum EPC rating of C by 2030. Asked in February whether the rules would impact the cost of housing, Ed Miliband told LBC: “There is some government help, we’re looking at what more can be provided.
"There are some local grants, there’s the boiler upgrade scheme. When this was done before with a less exacting standard, we didn’t see rent increases and half of landlords already do this.”
However, the Conservatives believe the target could push rents up by as much as £4,000 a year to cover the cost of upgrading older properties or to match lower rental housing supply when landlords sell up.
Hollinrake told The Telegraph: “Red Ed promised to reduce everyone’s bills but his mad dash to net zero is picking people’s pockets.
“Not content with sending bills skyrocketing, hardworking families’ rents are now in his crosshairs. Maybe this confession will make him finally realise that Labour’s war on landlords just leaves renters worse off. He needs to heed our calls to abandon net zero by 2050 and fast or working families and Middle England will continue to be clobbered by his eco cult.”
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