Tenants living in
some of the coldest homes in England and Wales are set to benefit from amended
regulations requiring landlords to install energy efficiency measures, Energy
and Clean Growth Minister Claire Perry has announced.
Since April this
year, landlords who own some of the coldest privately rented homes have been
required to improve these properties with energy efficiency measures where
support is available to cover the costs.
The new measures,
announced today following a public
consultation, will go further requiring landlords to contribute to the cost
of upgrades.
During 2019,
properties with an Energy Performance Certificate (EPC) rating of F or G, the
lowest 2 energy efficiency ratings available, must be made warmer by landlords
before they can be put on the rental market for new tenancies. This is expected
to cost £1,200 on average and will affect 290,000 properties, which represents
around 6% of the overall domestic market.
These changes are
expected to save households an average of £180 a year while reducing carbon
emissions and potentially increasing property values with analysis showing the
cost to the landlord would be more than offset by the increase in property
value.
Julie Hirigoyen,
chief executive at UKGBC said: “It is encouraging that the Government has
listened to concerns about the MEES and has increased the level of cost-cap.
"But,
unfortunately the amended regulations are only half-measures on tackling both
fuel poverty and carbon emissions. The Government’s own impact assessment shows
that setting the cost cap at just £3.5k will only bring 32% of F and G rated
homes up to Band E. And it is those families in the worst-performing,
draughtiest homes that will be left behind.
“We urgently need to
see the Government’s clean growth rhetoric of recent weeks reflected in
meaningful policy action. If we are to end fuel poverty, reduce carbon
emissions and deliver the Government’s stated ambition of keeping the UK at the
forefront of tackling climate change, we urgently need a step change in the
strength and efficacy of regulations being brought forward.”
Excess cold is by
far the largest preventable cause of death in the private rented sector. It is
estimated by the World Health Organisation that 30% of avoidable winter deaths
are due to people living in cold homes. These can be prevented if people were kept
warm during the winter months.
Most landlords will
be unaffected by the changes as their properties are already compliant.
Where upgrades are
necessary, the average cost to improve an F or G rated property to a band E is
expected to be around £1,200 – far below the upper ceiling being brought
forward under new regulations. Examples of measures include: installing floor
insulation, low energy lighting or increasing loft insulation. If upgrades will
cost more than £3,500, landlords will be able to register for an exemption.
Today’s measures
will come into force during 2019 and will affect around 200,000 landlords, some
of whom will still have access to a variety
of funding schemes. This includes support from the Energy Company
Obligation scheme and local grants to bring their properties up to the required
standard. These measures will help to ensure the housing and energy market
works for everyone by bringing greater fairness to energy costs and making
renting fair and more transparent for all.
The announcement
comes weeks after the first ever Green
GB Week which challenged governments, businesses and civil society to rise
to the challenge of reducing greenhouse gas emissions to avoid the stark and
sobering risks of climate change to health and global prosperity while the UK
moves to a cleaner, greener economy.
