The UK has one of the oldest housing stocks in Europe and, unfortunately, with age comes inefficiency. Older properties, particularly those built prior to the 1930s with solid wall construction, leak heat.
This is a particular problem in the private rental market where tenants have to pay the energy bills, but they are not in a position to lower them by installing meaningful energy efficiency solutions such as solid wall insulation or new energy efficient boilers.
Since April 2016, tenants have had the right to request certain energy efficiency improvements that the landlord may not unreasonably refuse.
Building on that, the Government is also proposing that from April 2018, landlords will not be able to rent out properties unless they hold an EPC rated E. (Find out more about EPCs here.)
Has the government gone far enough?
Whilst it is an encouraging sign that the government is starting to take energy efficiency more seriously, we feel that a lot more could be done. Introducing minimum standards is a great idea, but an E rating is very straightforward to achieve on most homes.
For the vast majority of homes, a relatively modern heating system and basic draught proofing and loft insulation will get them up to an E rating at least. We feel that instead of giving a rating level to achieve, the policy could be to ensure that certain measures are made mandatory.
For example, if cavity wall insulation, or loft insulation are recommended on a rental property, it should be installed. If the heating system has an efficiency rating below a certain level, it should be replaced. This would ensure that each property is treated the same and that these basic measures have been carried out in all rented properties.
Why should landlords embrace it?
As of spring 2018, landlords face a fine of up to £4000 for non-compliance. This means that in theory they would have to make a significant financial outlay in some cases to ensure that they can rent their properties.
However, at the moment, the ECO (Energy Companies Obligation) means landlords can have measures installed in their properties at no up front cost, with the tenant repaying the cost in their electricity bills. ECO is a grant, either means tested or paid out based on postcode.
In the long run, energy efficient properties will be more attractive since the tenants moving in will be able to pay less each month on their bills. There really is no reason why landlords can’t act now and start the ball rolling – there are plenty of ways to improve your property and it doesn’t have to cost a fortune.
Get in touch with us for an EPC!