Generation Rent says the PM was ‘reckless’ to bin EPC regulations for landlords

Generation Rent says the PM was ‘reckless’ to bin EPC regulations for landlords

10:44 AM, 4th October 2023, About 7 months ago 5

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Nearly 50% of private renters are reluctant to apply for grants that would make their homes more energy-efficient and reduce their bills, research reveals.

The findings from Generation Rent show that tenants are afraid of rent increases and evictions if they ask for energy performance certificate (EPC) improvements.

This affects 48% of tenants – and 53% of renters on Universal Credit or housing benefit – who are already struggling with high energy costs.

Two weeks ago, the Prime Minister Rishi Sunak scrapped the plans to increase the minimum energy efficiency standards (MEES) for rental properties.

That means landlords don’t have to accept any insulation works, even if they are paid by government grants.

And 30% of tenants say they are hesitant to apply for grants, as they anticipate their landlord will say no.

‘Currently pay hundreds of pounds more per year’

The deputy chief executive of Generation Rent, Dan Wilson Craw, said: “Tenants in draughty homes currently pay hundreds of pounds more per year than they would if their home was insulated properly.

“The government has made funding available to lift households out of fuel poverty, but it won’t reach enough people if landlords don’t have a clear responsibility to allow improvements.”

He added: “There is more the government could have done to assure tenants that they would benefit from green grants.

“In recognition of the tight timeline, the government could have delayed the new standards’ start date by a couple of years, but by scrapping new regulations entirely, the government has made the situation worse.

“This cruel, disproportionate and reckless decision means renters will be living in cold homes that make them poorer and sicker for many more years to come.”

Government’s lack of a ‘stick’ to compel landlords

Generation Rent argues that the government’s lack of a ‘stick’ to compel landlords to improve their properties will undermine the effectiveness of the ‘big government grants that Rishi Sunak announced when he was Chancellor.

The report also highlights that one in four private renter households is in fuel poverty, a higher rate than in social housing and owner occupation.

It cites research by think tank E3G, which estimates that raising MEES to Energy Performance Certificate (EPC) band C by 2025 would have saved private renters an average of £570 per year on their bills, totalling £1.75bn.


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Comments

northern landlord

15:19 PM, 4th October 2023, About 7 months ago

So, Generation Rent say that tenants are afraid of rent increases and evictions if they ask for energy performance certificate (EPC) improvements. If a tenant of mine could get a £10,000 grant to update a property I would look at it very favourably. But if a tenant expects me to find the money then the answer would be “no” unless they are willing to stump up an extra few hundred pounds a month in rent each month to save a few hundred pounds a year in energy costs.
Generation rent should be grateful that the Government has wound back on the proposed regulations as it keeps their rents down and many landlords faced with a £10,000 bill would have just sold up which would not have helped tenants at all. It would also help if the Government wound back on the RRB as well as that’s another incentive for landlords to quit the PRS or not enter it in the first place.

Teessider

16:39 PM, 4th October 2023, About 7 months ago

Not many landlords would turn their noses up at tenants claiming grants for EPC improvements.

However, GR and the like need to understand that if a landlord spends £10k on EPC improvements (that will save the tenant a few hundred pounds per year), that £10k needs to be recovered through higher rent. Even recovering it over 20 years (and forgetting the value of money declines with inflation), that’s £500 per year. That’s more than the tenants will save in energy bills.

The answer is to accelerate our move to greener energy. Other than loft insulation, cavity wall insulation (where appropriate) and double glazing, only Solar PV should be mandated/funded in my opinion.

I’d be happy to have Solar PV installed on my rental properties but the rent would need to rise to cover the cost. At £8k per house, I’d need around £60 per month additional rent.

It must be cheaper to fit Solar PV to all new houses and all public buildings.

Mick Roberts

17:29 PM, 4th October 2023, About 7 months ago

I'll come & buy 'em some New Builds if they like. If they pay the appropriate rents-Which will be over double what mine are paying for now.

And £570 per year saved on bills. The numbers don't add up then, as the rent would then be market rent approx £3600 per year more. Tenant worse off again. But that it seems is what happens when Generation rent get what they wish for.

I see my two compatriots above say the same.

rebecca anelay

9:38 AM, 5th October 2023, About 7 months ago

Reply to the comment left by Mick Roberts at 04/10/2023 - 17:29
The only behaviour that's wreckless is the hammering if landlords because now we're selling up! ...or trying to as my lovely Basford tenants have just refused to leave. Haha!
Do you know anything about grants to upgrade EOCs please?? as I would consider keeping the house maybe.x

Mick Roberts

10:20 AM, 5th October 2023, About 7 months ago

Reply to the comment left by rebecca anelay at 05/10/2023 - 09:38
Ha ha yes, refusing to leave. Lot of us got plenty of that in the coming years.

My Basford house is actually my furthest one away from me, about 2 miles away ha ha. Too far for me, want to sell when they've gone, but they don't ask for anything & I han't been upstairs in the houses for 12 years.

I know little, what I do know/think is ECO4 came out April 2023, free insulation, heat pumps etc., my mate just had FREE 30k of work solar power, heat pump etc. I had one house internally insulated, about 6k of work, not the tidiest, so I put a stop to all work as I thought this ain't working, retrospectively butchering tenants nice houses, Govt are gonna' have to rethink this. I told my ECO man, u not doing any more till we've sorted this. He wasn't happy with me as said every inspection was £250 & he too said He's putting a hold on mine at moment as he said he's not had anyone refuse works before. Which I get if u got nothing to lose like my mate above. But some of my tenants houses are really nice, their own decoration, carpets etc. Govt not thought about that, as Govt & Councils don't when bringing all this anti Private tenant stuff in, wrecking private tenants lives & homes.

And as know, Sunak 2 weeks ago or last week stopped it all. So whether the ECO grants are still there I don't know.

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