The Generation Rent activist group is demanding the government protects tenants from any rent hike as a result of expensive energy efficiency improvements. 

Last week’s Spending Review saw the government go ahead with its Warm Homes Plan, which aims to improve the energy efficiency of homes and lower energy bills.

Whitehall officials said ministers had been assessing whether they could trim the scheme as part of the review of all departmental expenditure. But Chancellor Rachel Reeves announced the Government will uphold it manifesto commitment to invest £13.2 billion in the Warm Homes Plan this parliament.

The investment will be allocated across schemes that support the roll-out of heat pumps, alongside energy efficiency measures and other low-carbon technologies, such as solar panels and battery storage. 

On top of other demands – such as the likely mandating of landlords to improve private rental property EPCs – this is set to increase costs for landlords.

But a statement from Generation Rent says: “With private renters most likely to live in fuel poverty, this is very welcome. But the Government must protect renters from rent hikes and eviction in the wake of energy efficiency improvements.”

The activist group is also unusually critical of the government’s new version of the longstanding Mortgage Guarantee Scheme, introduced in 2021 by the previous government.

This makes it easier for renters with little saved for a deposit to buy a home, typically providing mortgages for people with a 5% deposit.

Generation Rent claims there are limitations to the policy because it lends more money to pay high house prices – rather than making those prices more affordable. 

The activists say: “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.

“Judging by its record, the current guarantee scheme falls into the latter camp, with just 53,000 households benefiting from it, and just 28% of those were able to buy a home worth more than £250,000, roughly the average house price.”