Energy-inefficient homes a turn-off for renters

Energy-inefficient homes a turn-off for renters

8:57 AM, 5th January 2023, About A year ago 11

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More than half of renters say they would avoid an energy-inefficient property if it had an EPC rating of D or below, a survey reveals.

The findings from Shawbrook Bank show that 58% of private tenants would not rent an energy-inefficient home and there is a ‘significant knowledge gap’ about what EPC ratings are and energy efficiency.

Researchers found that young private renters are particularly engaged on energy efficiency, with 72% of those aged 18-34 saying they always check the EPC rating of a property before making any decisions. This is compared to 52% of those aged over 55 years old.

‘Energy efficiency rating of our homes’

Emma Cox, Shawbrook’s managing director of real estate, said: “With an unprecedented energy crisis, the energy efficiency rating of our homes has become increasingly important.

“However, the research also indicates that we, as an industry still have much to do in terms of educating those in the rental market on this issue.”

She added: “Interestingly young renters are paying closer attention to the energy efficiency of their properties.

“While we don’t know whether this is driven more by cost or an interest in sustainability, landlords should assume that it’s only going to increase in importance for tenants.”

Make all rental homes have an EPC rating of ‘C’

But landlords, it appears aren’t waiting for legislation changes to make all rental homes have an EPC rating of ‘C’ as Emma explains: “Landlords are already making changes to their properties to support their tenants and bring their properties up to the standard that is likely to soon be expected.

“However, this can be a costly exercise, particularly with the increasing costs of materials and labour.

The research is part of the bank’s ‘Confronting the EPC Challenge’ report, and it highlights a significant knowledge gap surrounding energy efficiency ratings.

Just 7% of respondents felt they ‘know a lot’ about EPC requirements, while a quarter (27%) of tenants say they have heard of EPC requirements but ‘don’t know anything about them’.

A further quarter (27%) had never heard of them, with half (56%) of renters admitting to not knowing the rating of their current property.

Previous research from Shawbrook showed that the energy crisis had prompted more landlords to make improvements to their properties with 26% having made energy efficiency upgrades to help reduce energy bills for their tenants.


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Comments

Reluctant Landlord

20:37 PM, 6th January 2023, About A year ago

Reply to the comment left by NewYorkie at 06/01/2023 - 13:48As I understand it (trying to remember back when I read the exemption wording) that the tenant themselves can state they do not want the work doing during their tenancy. At best this will give you more time to plan for when they do move on so any disruptive work can be done when empty.
Found it - https://www.gov.uk/government/publications/private-rented-sector-minimum-energy-efficiency-standard-exemptions/guidance-on-prs-exemptions-and-exemptions-register-evidence-requirements
7. ‘Consent’ Exemption
Third party consent exemption (Regulation 31(1) and Regulation 36(2)).
Applies to domestic and non-domestic property.
Depending on circumstances, certain energy efficiency improvements may legally require third party consent before they can be installed in a property. Such improvements may include (but are not limited to) external wall insulation or solar panels which can require local authority planning consent, consent from mortgage lenders, or other third parties. Consent from a superior landlord may be required where the landlord is themself a tenant. Consent may also be required from the current tenant of the property or other tenants depending on the provisions of the tenancy or tenancies.
It is not practical to provide an exhaustive list of all situations where third party consent requirements may apply. Information on when and where consent is required will be contained within relevant documentation, for example in the landlord’s lease or mortgage conditions.
Information Required: when registering an exemption of this type the landlord will need to upload to the register, a copy of any correspondence and/or relevant documentation demonstrating that consent for a relevant energy efficiency measure was required and sought, and that this consent was refused, or was granted subject to a condition that the landlord was not reasonably able to comply with.
Once registered, the exemption will generally last 5 years; after this time it will expire and the landlord must try again to improve the property’s EPC rating to meet the minimum level of energy efficiency. If this cannot be achieved then a further exemption may be registered. Please note however that, where improvements cannot be made because consent could not be obtained from the current tenant of the property, the exemption will only remain valid for as long as that tenant remains the tenant. The improvement would then need to be made before the property is let on a new tenancy.
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