Fears more costs will pass to consumers as yet more taxes from Labour announced

7 February 2025, 13:22 | Updated: 7 February 2025, 14:53

Labour has been accused of 'burdening' hard-pressed Britons with a 'misguided' extra cost after unveiling controversial energy efficiency rules.

Each landlord faces a bill of £6,000 to meet the new draconian regulations and campaigners fear this extra cost will be passed onto renters.

This comes as many pressed are already reeling from sky-high energy bills and a struggling economy.

Today energy secretary Ed Miliband has rejected suggestions that energy efficiency plans will drive up rental prices.

But there are fears any savings on energy bills could be more than overshadowed by landlords passing the new tax costs onto tenants.

Read more: Landlords face £6k bill to meet higher energy efficiency targets under government plans

But there are fears any savings on energy bills could be more than overshadowed by landlords passing the new tax costs onto tenants.

Speaking about the energy plan 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."

Nick Ferrari questions Ed Miliband about rising bills

Mr Miliband has told LBC people who pay their rent "have a right" to live in warm homes. He said: "People, if they've paid their rent, have a right to live in warm homes so that's what we're going to do.

"(Landlords will have to do) loft insulation, cavity wall insulation, it's to get up to the equivalent of what's called EPCC...it will have a cost for landlords, we estimate it'll be around £6,000 on average, they do have time to prepare for this but we think there's an important principle here, if you pay your rent, you have the right to decent accommodation".

Asked whether it would be likely rents would have to go up to cover the cost, he said: "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".

Under the proposals, all private landlords in England and Wales will be required to meet Energy Performance Certificate (EPC) C or above by 2030 - an increase from the current the lower EPC E level rating required.

The Government said the proposals could save renters £240 a year on average on their energy bills - however, the change could see landlords slapped with a bill of between £6,100 to £6,800 by 2030.

The new Government proposals will see a maximum £15,000 cap beyond which landlords will not have to spend to meet the EPC C rating, with potential for a lower £10,000 cap if renters are charged lower rents or homes are in a lower council tax band.

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 per cent 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.

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 per cent 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.

Labour says the proposal, which is currently out for consultation, could lift up to half a million households out of fuel poverty thanks to the resulting reduction in heating and energy costs.

Under the plans, landlords will have the choice of how to meet energy efficiency standards, with options such as loft insulation, cavity wall insulation and double glazing.

They will also then have further options such as solar panels, batteries and smart meters, or low carbon heating such as heat pumps.

It comes as Awaab's law, forcing social landlords to fix dangerous damp and mould, is set to be introduced in October.

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."

Previous proposals requiring landlords to meet EPC C standards for private rented homes by 2028 were axed by then prime minister Rishi Sunak. Then the move was welcomed by landlords, but drew criticism that it was locking in tenants to years of higher bills.