Rachel Reeves faces £7,550 bill to upgrade EPC rating on her rental home

Property118

Rachel Reeves faces £7,550 bill to upgrade EPC rating on her rental home

The Chancellor Rachel Reeves is facing a £7,550 bill to improve the energy performance of her London home under Labour’s tougher EPC rules for private landlords.

The Daily Telegraph reports that her four-bedroom property in Dulwich is rated D, falling short of the requirement for all new tenancies to meet EPC C by 2028 and all lets by 2030.

The rules, introduced by Ed Miliband, mean her family home risks falling foul of legislation unless she pays for recommended upgrades.

An EPC report for the house, seen by the newspaper, outlines a programme of works costing between £4,900 and £7,550.

Labour’s red tape burden

Conservative Party chairman, Kevin Hollinrake, said the Chancellor’s latest predicament underlines the pressure created by Labour’s climate strategy.

He told the Telegraph: “Rachel Reeves finds herself in yet another sticky situation of her government’s own making.

“Ed Miliband’s reckless dash for net zero means Reeves now faces a £7,550 bill to bring her property up to an EPC rating of C.”

He added: “This is indicative of the growing burden of red tape Labour is piling onto landlords across the country – driving up rents and reducing supply.”

List of EPC improvements

The EPC improvement suggestions include thicker loft insulation at an estimated £100 to £350 and removing flooring to install new insulation at £800 to £1,200.

Fitting solar water heating, typically costing £4,000 to £6,000, is also recommended.

If completed, these steps would move the property from a score of 64 to 70, taking it into the C band.

However, the projected savings are modest with annual energy bills being cut by roughly £300.

That means the Chancellor’s investment could take around 25 years to recover.

Reeves failed to license home

It is the second time in recent months that Reeves has faced scrutiny over her rental home.

In October, she was found to have breached housing rules by failing to obtain a selective licence from Southwark Council after letting out the property when she moved into No 11.

The Labour-run authority waived enforcement action, despite previously prosecuting private landlords for the same offence and penalties can reach £30,000.

Rent inflation driven by costs

The National Residential Landlords Association’s Chris Norris warned that many landlords face similar costs with little financial support to carry out the work.

He said: “The government has been slow to recognise the economics of private renting when it comes to energy efficiency measures, and the fact that rent inflation is driven largely by landlords’ costs.

“Even if these costs are not her primary concern, we would encourage the Chancellor to focus on the effect that these upfront costs will have on the cost of living for renting households.”

The former energy and net zero minister, Miatta Fahnbulleh, said the shift to EPC C by 2030 is intended to ‘reduce the number of fuel-poor households in England’.

She added: “Ensuring warmer, healthier private rented homes will lift many families out of fuel poverty and reduce energy bills.”

Industry estimates suggest landlords may face a combined outlay of around £36bn, and that the entire rental stock is unlikely to reach EPC C until 2043, 13 years beyond the government’s deadline.

Lenders are also warning that some landlords could choose to exit the market or remove homes from long term lettings, increasing eviction risk and further tightening supply.

The Chancellor’s spokesman was approached for comment by the Telegraph.

The post Rachel Reeves faces £7,550 bill to upgrade EPC rating on her rental home appeared first on Property118.

View Full Article: Rachel Reeves faces £7,550 bill to upgrade EPC rating on her rental home