Landlords can force tenants to pay for insulation demanded by Miliband
Landlords will be able to pass on the cost of upgrading rental properties to tenants, the Government has admitted.
Ed Miliband's net zero rules will require all rental properties to meet a minimum energy performance certificate rating of C by 2030.
Despite the Energy Secretary's insistence that landlords will not put up rents to reach new efficiency targets, a minister has now said there are grounds for 'higher market rents'.
The Conservatives say rents could rise as much as £4,000 a year to cover the cost of upgrading older properties or to match lower rental housing supply when landlords sell up.
But Mr Miliband has previously said that when past standards were introduced 'we didn't see rent increases', and pointed to government schemes that help with the cost of insulation and heat pumps.
The Government claims tenants will save £240 a year on their energy bills if their homes are better insulated.
Sarah Sackman, a justice minister, has now admitted to Parliament that the cost of upgrading properties can legally be passed onto renters, paving the way for significant rises over the next five years.
She was asked by Kevin Hollinrake, the shadow housing secretary, whether rents could legally be increased because of the cost of net zero upgrades if a tenant challenged a rise in court.
Ms Sackman said that 'expenditure on the upgrading of an energy performance certificate to a higher level of energy efficiency is a material consideration, which may result, in certain circumstances, in a higher market rent being determined'.
The admission comes despite Mr Miliband's insistence that the new rules will not push up rents.
Asked in February whether the rules would impact the cost of housing, he told LBC: '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.'
Announcing the policy earlier this year, the Government said that it would 'save private renters £240 per year on average on their energy bills'.
But Mr Hollinrake told The Telegraph: 'Red Ed promised to reduce everyone's bills but his mad dash to net zero is picking people's pockets.
'Not content with sending bills skyrocketing, hardworking families' rents are now in his crosshairs. Maybe this confession will make him finally realise that Labour's war on landlords just leaves renters worse off.
'He needs to heed our calls to abandon net zero by 2050 and fast, or working families and Middle England will continue to be clobbered by his eco cult.'
Separate analysis found the policy is likely to push up rental prices by up to £4,000 a year for tenants.
Some landlords say they would prefer to sell historic homes with poor energy efficiency than be forced to undertake extensive renovation to meet the standard.
Ben Beadle, chief executive of the National Residential Landlords Association, called in February for ministers to pursue a 'realistic' version of the policy.
'The chronic shortage of tradespeople to carry out energy efficiency works needs to be addressed, alongside a targeted financial package to support investments in the work required,' he said.
Rob Wall, assistant director at the British Property Federation, said it would be 'challenging' for all properties to meet the standard required.
He said: 'We would like to have seen recognition of the time lost reflected through a gentler trajectory, to provide the sector with sufficient time and support to carry out necessary work.'
A Department of Energy Security and Net Zero spokesman has said: 'Everyone deserves to live in a warm, comfortable home.
'We have recently consulted on plans to require private landlords to meet higher energy performance standards, which will help deliver cheaper-to-heat homes.
'These plans could lift up to half a million households out of fuel poverty by 2030, while also making renters hundreds of pounds better off.'
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