Homes with a poor energy rating will be banned from the rental market in five years’ time, the Government has announced. Reactions have been mixed with one landlord body saying that it could blight rental properties.
Energy and Climate Change Secretary Chris Huhne this week announced plans to introduce regulations to ensure that all landlords face minimum energy efficiency standards under the Green Deal.
Under the proposals, announced at the second reading of the Energy Bill:
From April 2016, landlords will not be able to refuse ‘reasonable’ requests from tenants, or local authorities acting on behalf of tenants, to improve their property.
From April 2018, the Government will make it unlawful to rent out a house or business premise which has less than an E energy efficiency rating. The Government says this will ensure that at least 682,000 properties will have to be improved.
The Green Deal is a Government flagship programme which means that from next year, people will be able to access finance to pay for the upfront cost of work which will be paid back over periods of up to 25 years via users’ fuel bills.
The Government insists that the Green Deal proposals will “help the most vulnerable, as more than a quarter of a million of the worst insulated rented homes are classed as fuel poor”.
However, landlord bodies have pointed out that tenants may not be happy, or in a few cases even able, to pay higher utility bills to repay improvement grants taken out by their landlords.
Alan Ward, chairman of the Residential Landlords Association, said: "We are concerned that properties improved under the Green Deal will be blighted as a result of tenants being frightened of higher energy charges, particularly as the cost of fuel increases, in order to pay back the deal."
Ian Potter, operations manager of ARLA, said: Ian Potter, operations manager of ARLA, also expressed reservations. He said: “The Government’s decision to allow F and G rated properties to remain on the market until 2018 is a practical one, given that around 17% of properties in the private rented sector fall into this category. This equates to around 500,000 properties.
“However, we remain concerned about the lack of detail on ‘greening’ rental stock. So far, there is no clarity on how energy improvements will be assessed or enforced – or, importantly, how this assessment will be funded.
“ARLA would like to see the Energy Performance Certificate Register made publicly available so that those properties that do not meet energy efficiency standards can be identified.
“We believe that the Bill in its current form risks disincentivising the lettings market and discouraging landlords from investing in the private rented."
Ian Fletcher, director of policy at the British Property Federation, said: “Some will also query why the Department is placing so much stall on the private rented , when there are far more carbon emissions emanating from the owner-occupied sector.
"Regardless, it is important that landlords start to consider whether they will be caught and have their plans ready for when the Green Deal goes live next year. The Government has binding climate change commitments and landlords are party to those. There are opportunities, however, as well as threats in improving energy efficiency and landlords who start thinking about and acting on the issues will be best placed to handle both.”
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Comments
As an DEA I have to say EPCs are the biggest waste of time and money going. It is purely a covert tax the government get a cut out of every EPC.
As for landlords they are under immense financial pressure and are struggling to keep on top of properties never mind more financial strain and legislation.
Bunkum! in 5 years time there will be such an accute shortage of properties to rent that there wil be political pressure to accept whatever property tenants can get their hands on. Folk are living in sheds right now just to have somewhere to live that is not a shop doorway.
Idiots!
Do we all remember the HIPS the government brought in that were required to sell a property? Lots of companies started up to train people to do HIPS. These companies charged thousands to the people they trained. Now they are not needed.
UPVC windows are a hideous. Every time I see another house that has fallen victim to this plastic monster that's spoilt our period heritage my heart sinks.
I bet the minister thought this up while gazing into his open fire, a bottle of claret in hand while the windows on his Georgian mansion were gently rattling.
What about a useful ban on barbecues. They create lots of emissions. Our neighborhood stinks in the summer most nights of the week.
I have some poor EPC houses and they are cheap to rent.
The last one I let the punter made comment about the heating which is free standing heaters and my comment was but its cheap. Every time I get comments about this and other issues with these houses I just keep saying but its cheap.
I have no problem in letting this type of property so let the elected dictatorship of a government try to take them out of the market place. I think there will be trouble ahead because these type of properties fullfill a demand.
Why are all governments control freaks and treat people as idiots?
An EPC is available to a tenant - read it. If it is an F or G
compare with similar and then negotiate a £50 p.m. rent reduction which will more than offset higher heating bills.
BUT, of course this is all about the 'big picture' and of us micro nibbling at the climate change issue whilst the USA, India, China etc do nothing much. (Same with light bulbs!)
Hopefully the Government will exempt Period properties but I so wish this Government would engage their brains before operating their mouths!
So will they go on to ban the sale of properties with a poor EPC? Then they'll increase Council Tax on offending properties, it is the inevitable conclusion and the secret driving force for EPCs.
Wait and see . . . .
It will be interesting to see how the Government will require Landlords to make improvements on the many Grade II and GradeII* listed properties that I rent out. These are nearly always worse than an E on an EPC but this is part of the charm that attracts higher rents from more affluent tenants. Again, another Government initiative with the best intentions but not thought through at all.