MP Questions Potential Rent Hikes Linked to Warm Homes Plan Energy Efficiency Upgrades
Summary: Labour MP Bell Ribeiro-Addy has raised concerns about landlords potentially increasing rents after using government grants and loans from the Warm Homes Plan to fund energy efficiency improvements. The government maintains that rent rises are not required and that tenant protections under the Renters’ Rights Act 2025 will prevent excessive increases, though some industry voices warn of costly upgrades for landlords.
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MP Raises Concern Over Rent Increases from Warm Homes Plan
Labour MP Bell Ribeiro-Addy has formally questioned the government on whether it will prevent landlords from raising rents after using grants and loans provided under the Warm Homes Plan to improve energy efficiency in rental properties. The MP’s written question reflects growing unease among tenants and landlords about the financial implications of meeting new energy performance standards.
Government Response: Rent Increases Not Required
In response, Martin McCluskey, Minister for Energy Consumers, emphasised that the Warm Homes Plan aims to lift up to one million households out of fuel poverty through public investment and new minimum energy efficiency standards for private and social landlords. He stated, “These changes do not require landlords to increase rents. Instead, they will help tenants cut their energy bills by delivering more energy-efficient homes.”
McCluskey also highlighted the availability of support and financing options for landlords, alongside new tenant protections under the Renters’ Rights Act 2025, which enables renters to challenge above-market rent increases. “As now, landlords will still be able to increase rents to market price for their properties and an independent tribunal will make a judgement on this, if needed,” he added.
The Minister further explained that landlords will have discretion in choosing between meeting heating system standards or smart readiness standards, allowing flexibility to select the most appropriate measures for their properties. He noted that the new private rented sector minimum energy efficiency standards (MEES) could lift approximately 415,000 households out of fuel poverty by 2030. A cost cap of £10,000 per property, reduced from £15,000, aims to minimise the risk of landlords passing costs onto tenants while still delivering significant home improvements.
Industry Concerns Over Cost and Practicality of Upgrades
Despite government assurances, Timothy Douglas, head of policy and campaigns at Propertymark, warned that landlords face potentially substantial and costly upgrades to meet EPC C targets by 2030. He criticised the lack of clear, long-term funding commitments, realistic delivery timescales, and sufficient flexibility for older, complex, or hard-to-treat properties.
Douglas called for a phased and realistic approach that would enable landlords to maintain the Decent Homes Standard, manage costs effectively, and contribute meaningfully to the UK Government’s net zero ambition by 2050.
Previous government consultations have acknowledged that EPC regulations may lead some landlords to sell properties or increase rents, underscoring the financial pressures involved in meeting energy efficiency targets.
What This Means for UK Landlords
Landlords should be aware that while the Warm Homes Plan provides funding and support for energy efficiency improvements, there is no government-imposed requirement to raise rents as a direct consequence. However, landlords retain the ability to adjust rents to market levels, subject to tenant protections and potential tribunal review.
It is important for landlords to carefully consider the costs and implications of meeting EPC C standards by 2030, particularly for older or more complex properties. Engaging with available financing options and understanding tenant rights under the Renters’ Rights Act 2025 will be essential to managing this transition effectively.
Letting agents and property managers should prepare to advise landlords on balancing compliance with energy efficiency standards and maintaining fair rental practices, while also supporting tenants who may benefit from lower energy bills.
Suggested internal link anchors
- Warm Homes Plan
- energy efficiency standards
- Renters’ Rights Act 2025
- private rented sector
- minimum energy efficiency standards (MEES)
- EPC C targets
- fuel poverty
- landlord rent increases
- energy bills
- Decent Homes Standard
- net zero by 2050
TLA update
TLA is launching a new Trusted Partners Hub in Q1 2026, featuring verified and approved service providers selected to support landlords, tenants, and property management businesses. We are inviting legal, trades, insurance, financial, mortgage, tenant screening, and other service providers to register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/
Source: www.property118.com