Tenant campaign group Generation Rent is calling on the government to shield renters from rent increases and evictions linked to energy efficiency improvements, following confirmation of the £13.2bn Warm Homes Plan in last week’s Spending Review.

The Warm Homes Plan, a key Labour manifesto pledge, will fund the roll-out of heat pumps, solar panels, battery storage, and home insulation upgrades. While the investment aims to cut emissions and reduce energy bills, it may also raise costs for landlords, especially if minimum EPC standards are tightened for private rented homes.

In a statement, Generation Rent welcomed the plan, noting that private renters are disproportionately affected by fuel poverty, but warned:

“The Government must protect renters from rent hikes and eviction in the wake of energy efficiency improvements.”

The group is also critical of the government’s revamped Mortgage Guarantee Scheme, which helps renters buy homes with a 5% deposit. While intended to assist first-time buyers, Generation Rent argues it fails to address the underlying issue of high house prices.

They stated:

“Either you do too much and stoke house price inflation, making it harder for renters to buy, or you do too little and few households actually benefit.”

Since its 2021 launch, the scheme has helped just 53,000 households, with only 28% of those purchasing homes above £250,000 – roughly the UK’s average house price.