Lobbyists say landlords ‘cannot be allowed to wriggle out of EPC reforms’
Acorn says that lifting tenants out of fuel poverty and decarbonising homes is ‘more important than landlords’ profits.’
As the Government runs a consultation on its plans to bring in tougher EPC requirements for landlords, tenant pressure group Acorn has lobbied to ensure there will not be a £15,000 price cap on landlords’ upgrade responsibilities.
The cap is one of the ‘exemptions’ Labour is considering, which would enable landlords of properties where upgrade costs exceed £15,000 able to dodge the new EPC minimum.
Acorn says: “We are not in favour of a cost cap. Most properties will be able to be renovated to the correct standard for much less than £15,000, but for those tenants living in homes that need serious work done, it is unfair that they should continue to have to live in substandard conditions because the work would cost more than £15,000.”
No exemptions
And they add that there should be no exemptions, saying: “This will lead to a two-tier system where tenants on a lower income or in lower house price value areas would have worse standards – every tenant should be able to expect the same standards and there should not be a postcode lottery.
“The project to lift tenants out of fuel poverty and decarbonise homes is more important than safeguarding landlord profits – landlords are able to sell if they do not want to make the investment.”
We want to ensure tenants do not see large rent rises as a result of these new standards.”
The group, however, also wants to ensure tenants are not exposed, in any way, to the costs of the improvements: ”We want to ensure tenants do not see large rent rises as a result of these new standards. We are calling for a freeze on rents for two years after a renovation has taken place and a moratorium on no-fault eviction grounds.
“If a landlord had accessed public grants to help with the works, the freeze on rent increases and no-fault evictions should be longer so that the landlord cannot capture the value of that public money for profit.”
‘Notice to renovate’ demand
In order to minimise any inconvenience Acorn is also demanding tenants should be “given a few months’ notice of the intention to renovate. Landlords should negotiate with tenants on when the works should take place to avoid exams, religious holidays, big life events, surgery, etc.
“If tenants will be required to relocate for the duration of the works, then somewhere convenient for them needs to be found that allows them to access work, school and medical appointments that takes into account parking and public transport.
“Tenants should expect their home to be like for like when they move back in, ie. No rooms divided. Any planned changes outside of energy efficiency measures should be communicated with the tenant.”
Interested parties must respond to the consultation by 2nd May.
The Government’s expectation that landlords should personally fund extensive and costly improvements to meet upcoming EPC requirements is, quite frankly, out of touch with reality. These proposed standards are not only financially unrealistic for the average landlord – they are completely unsustainable.
Let’s be clear: many landlords are already operating on razor-thin margins, especially those with mortgages. As David McMaster rightly points out, most are “barely breaking-even.” Forcing them to invest thousands of pounds in property upgrades simply isn’t feasible. Instead of undertaking this unaffordable work, many will choose – or be forced – to exit the market altogether.
If it weren’t already April 15th, you’d be forgiven for thinking this was an April Fool’s joke. Acorn, are you paying attention? The warning signs have been loud and clear in the press for years. Agents across the country have been sounding the alarm to you and the Government, yet the message continues to fall on deaf ears.
To believe that the average landlord can somehow absorb this financial blow is, quite honestly, delusional. This kind of policymaking, made in a vacuum, is setting up the rental sector for collapse. The consequences won’t just hit landlords – they’ll hit tenants, communities, and the housing market at large.
It’s time the Government woke up to the reality it’s creating.
Acorn, please WAKE UP!! When will they accept that the majority of private landlords are absolutely not the money grabbing evil people they love to portray. The backbone of the private rented sector is the landlord with one or two properties that they have invested in, are only scraping a break even if they have a mortgage and Acorn expects them to spend an unlimited sum while putting the tenants up in the local Hilton at the exact time that suits the tenants. The simple reality is that this typical landlord that the best of the PRS encouraged in is now being scared off. Who could blame them for cashing in and investing in something that would give them a similar return without a mountain of grief and hassle. When the sales market recovers we will then see the true tide of landlords leaving the PRS – who will Acorn moan about then?