Landlords warn that energy efficiency plans are ‘dead in the water’

Landlords warn that energy efficiency plans are ‘dead in the water’

0:03 AM, 10th January 2023, About A year ago 55

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Landlords are warning that plans to improve the energy efficiency of homes in the private rented sector (PRS) are ‘dead in the water’ because the Government has failed to respond to a consultation on the issue which closed two years ago.

Originally, a target for all new tenancies in the PRS to have an energy performance rating (EPC) of at least a ‘C’ by 2025 was made by the Government.

It was then proposed that the EPC target be extended to cover all tenancies by 2028.

However, the consultation on the issue closed in January 2021 – with the Government not providing any response to it which has led to uncertainty within the PRS about what is expected.

Dates for improving energy efficiencies

Now the National Residential Landlords Association (NRLA) is calling on the Government to make clear that the dates for improving energy efficiencies are now ‘unrealistic’.

The organisation is also urging certainty for the market and wants a definitive timetable for the publication of a consultation response – and any proposed legislation.

Among the Government’s proposals was for all landlords to pay up to £10,000 to carry out the necessary improvements to meet the proposed EPC targets.

‘Want to see properties as energy efficient as possible’

The NRLA’s chief executive, Ben Beadle, said: “We all want to see properties as energy efficient as possible.

“However, the Government’s delay in responding to its consultation on energy standards in the private rented sector means its plans are dead in the water.

“The lack of clarity is playing a major part in holding back investment in the homes to rent tenants desperately need.”

He added: “In the interests of certainty, the Government needs to admit what we all know, namely that it has no hope of meeting its proposed energy targets for the rental market.”

Calling for any proposed cap to be linked to the average market rent

The NRLA is calling for any proposed cap on what landlords will pay to be linked to the average market rent for the area in which the rental property stands.

This move would, the NRLA says, see a landlord’s bill being tapered from £5,000 to £10,000 if rental and property values were considered.

Also, NRLA wants a package of financial measures to support a landlord’s investment, and this would include a new tax allowance for landlords who carry out remedial work towards meeting the Government’s Net Zero target.

‘Misguided assumption that landlords have unlimited sums of money’

Mr Beadle said: “The plans, as they currently stand, rely on a misguided assumption that landlords have unlimited sums of money.

“The proposals fail to accept the realities of different property and rental values across the country, and that the private rented sector contains some of the most difficult to retrofit homes.

“Ministers need a smarter approach with a proper financial package if we want to ensure improvements to the rental housing stock.”


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Comments

Robin Pearce

14:12 PM, 21st January 2023, About A year ago

I had a notice from the council last year when they thought one of mine hadn't been upgraded to E from F in 2021, for the deadline for E min.
I'd already achieved this by fitting a high capacity storage radiator that just nudged it into band E.
I told them to look at my new EPC online which they'd failed to do.
It just shows they'll be ready to pounce if we don't meet new EPC regs.

Meantime please write to your MP as I have, to ask whether or not EPC software will be reprogrammed to account for the fact nearly half our electricity now comes from renewable sources.

As the dash for band C is towards the aim of net zero, then until that is included in the EPC software it's the wrong tool to assess carbon footprint.

At present EPC software merely calculates energy efficiency & running costs.
Gas heated flats produce more CO2 but have better EPC rating due to EPC software not taking account of nearly half our electricity being generated from renewables

Old Mrs Landlord

16:34 PM, 21st January 2023, About A year ago

Reply to the comment left by Christopher Rattew at 11/01/2023 - 09:47
You point out that switching from gas to electrical heating will result in burning more fossil fuel (gas), so why are government pushing for gas-heated properties to change to air pumps - to the extent even of subsidizing their cost - which will use more electricity and achieve a lower EPC rating? Nothing about current policy adds up.

Robin Pearce

16:50 PM, 21st January 2023, About A year ago

"You point out that switching from gas to electrical heating will result in burning more fossil fuel (gas)\"
I didn't !
I said electricity generation produces less CO2 because roughly half now comes from renewables, wind farms etc
So unless they taken this into account in EPC software, then the EPCs are an inaccurate guide to CO2 output from electrically heated properties.
Currently most gas heated have better EPCs as running costs are lower whilst CO2 output is higher !
Yet the main aim of all the extra insulation to get better EPC values is net zero by 2050.
Using EPC software that doesn't include the green factor in electrically heated flats !

Chris Rattew

17:41 PM, 21st January 2023, About A year ago

There is a record of EPC certificates, and some agents will not advertise non-compliant properties, so this could be followed up. If there is no EPC certificate, it may take some time to discover.

Seething Landlord

1:48 AM, 22nd January 2023, About A year ago

Reply to the comment left by Ian Simpson at 21/01/2023 - 13:13
We keep being told that there are rogue landlords who operate below the radar and ignore the regulations that don't suit them, so if you want to adopt a similar stance I guess that's up to you.

Ian Simpson

6:26 AM, 22nd January 2023, About A year ago

Reply to the comment left by Seething Landlord at 22/01/2023 - 01:48
I see what you are saying, but I am wondering what would happen in practice if a long term tenancy (Family been in situ for eight years) suddenly shows that the EPC level is not D or C or whatever they want...? What will the council do...? Initiate eviction of said family...? This would only add to their own overstretched housing needs...?? I just cannot see them doing anything about it at all...

Seething Landlord

8:39 AM, 22nd January 2023, About A year ago

Reply to the comment left by Ian Simpson at 22/01/2023 - 06:26
I imagine that the procedure will be the same as it is currently if a let property below band E comes to their notice.

Rod

13:08 PM, 22nd January 2023, About A year ago

This week, iHowz wrote to both the All Party Parliamentary Group on Climate Change and Chris Skidmore MP, chair of the Net Zero report which was published last week.

iHowz continue to push the Government to publish the new EPC requirements and MEES standard, so landlords can understand what is expected, when and how the energy cost / carbon emission balance has been set.

https://ihowz.uk/the-anticipated-standards-for-the-minimum-energy-efficiency-standards-mees/

To answer the question of how local authorities will identify non-compliant landlords, this is likely to be policed using the Property Portal, which is already being scoped out, while we wait for the Government to publish
- Latest EPC standards and MEES
- Updated Decent Homes Standard
- The DLUHC committee hearing report on the Fairer Private Rental Sector Bill

To a degree, EPCs are already being policed by several landlord suppliers, such as rental sites, agents and mortgage lenders.

Seething Landlord

14:19 PM, 22nd January 2023, About A year ago

Reply to the comment left by Rod at 22/01/2023 - 13:08
Why on earth can they not simply let sleeping dogs lie?

TheMaluka

14:47 PM, 22nd January 2023, About A year ago

Reply to the comment left by Seething Landlord at 22/01/2023 - 14:19
Is 'sleeping dogs' a euphemism for 'politicians'?

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