Landlords say the government’s green upgrade plans are “financially impossible”, with new research showing most can’t afford the huge costs needed to meet tougher energy efficiency rules.
Ministers want landlords to spend up to £15,000 per property to hit new standards — but analysis for the National Residential Landlords Association (NRLA) shows many would struggle far earlier, with £7,700 the point at which upgrades become unaffordable for the average landlord.
The warning comes after the Budget slashed funding for energy-efficiency schemes by a quarter over the current parliamentary term, according to think tank E3G.
The NRLA has hit out at ministers for assuming landlords are in a position to foot any bill, warning that most don’t have the cash to meet costly green upgrade demands. HMRC figures show the typical unincorporated landlord brings in just £19,400 a year in rental income – less than a full-time minimum wage job.
Despite this, the Budget offered no targeted support to help the rental sector meet the government’s energy efficiency plans, even after the Committee on Fuel Poverty urged ministers to consider new tax breaks to make upgrades viable.
With landlords still waiting for the government’s final proposals, the NRLA is calling for all energy-efficiency spending to be tax-deductible. It also wants the cap on required investment to be tied to a property’s value, warning that flat-rate rules would hit cheaper northern homes hardest and deepen the existing north–south divide.
Ben Beadle, chief executive of the NRLA, said: “We want all rental properties to be as energy efficient as possible. However, this isn’t going to happen without a serious plan to support the investments needed.
“Relying on the misguided belief that every landlord has limitless reserves to fall back on is not only wrong but will not get tenants any closer to seeing their homes made energy efficient.
“If the government is serious about its plans, it needs to engage with the sector now to develop a clear, bespoke package to help responsible landlords invest in energy efficiency works. That needs to start by fixing a broken tax system which does nothing to encourage proactive property improvements.”