0:03 AM, 8th March 2023, About 7 months ago 4
The Welsh government is being urged to consider offering financial incentives to landlords to help them decarbonise their rental properties.
The move follows advice given by industry body Propertymark to the influential Senedd Climate Change, Environment, and Infrastructure Committee’s inquiry into the decarbonisation of the PRS.
Some of its recommendations include starting a national campaign towards Net Zero and offering financial incentives for the PRS.
Though the plans have not been made into law, ministers have previously indicated that by April 2025, newly rented properties in England and Wales might need to meet a minimum EPC standard of C – tougher than the current E standard.
The regulation might also apply to existing tenancies from 2028, though there is no confirmation yet that the requirement to meet an EPC rating of C will be introduced.
Under current government regulations, landlords are not expected to spend more than £3,500 on EPC upgrades.
Propertymark says the cap on upgrade costs might be raised to £10,000, which would impact Welsh properties the hardest. The industry body says Welsh properties have some of the lowest property values in the UK and low energy efficiency ratings.
The organisation has recommended that the Development Bank of Wales should offer grants or interest free loans to landlords to help them decarbonise and to finance retrofitting their homes.
Also offering financial incentives such as reduced rates of Land Transaction Tax or Council Tax rebates for both landlords and homeowners should be considered.
Propertymark is now calling for a clear strategy to support landlords in contributing to Net Zero and a Welsh-wide national communications campaign for tenants, landlords, agents, and homeowners should be undertaken.
The industry body says that by improving energy efficiency in homes, tenants will be helped to keep their household bills down.
Timothy Douglas, the head of policy and campaigns at Propertymark, said: “We support the Welsh Government’s aims of achieving Net Zero and moves to improve the energy efficiency of homes in Wales.
“A long-term housing decarbonisation strategy with cross-party support and realistic targets can help to achieve this.
“We now urge the Welsh Government to act upon these recommendations and work with the UK Government to introduce policies that allow landlords and homeowners to decarbonise their homes and properties in Wales.”