Rented homes and energy efficiency: a sad tale of intention and action

Lost in the mists of time (or 2011, to be precise) yet another Energy Bill found its way onto the statute books.  Most of us have probably forgotten what was in that bill, since several, rather more meaty examples of the species have come along since.  I haven’t, since I had the pleasure of sitting through an interminable series of committee meetings debating the finer points of the Bill. One such example was legislation requiring landlords to uprate the energy efficiency of their properties to a specified level by 2018 or face being unable to let them out, providing that the cost of the improvements would not be disproportionately burdensome. Some of us at the time thought that the 2018 date was a bit far in the future, but generally, the proposal had strong all party support and passed into law.

But, and there always are buts, the proposals required some secondary legislation to come to pass. Not least a specification of what energy band those landlords would need to attain, and what limitations on landlords’ expenditure would be regarded as ‘reasonable’. Furthermore, there was a question, which the committee at the time seemed to think would not be a problem, but the wording of the legislation later demonstrated otherwise, of what properties exactly would be covered by the new requirement? Would it just be where landlords were renting out an entire property to a tenant and would therefore obtain one energy performance certificate for the whole property? Or would it include the probably more numerous instances where properties were being let to more than one tenant – divided properties or multiply occupied homes?

Well, here we are three years later, and wooo, the first of the ‘buts’ has eventually been made into an ‘and’. At the end of July, the Department has finally got round to producing a consultation paper on how the proposals in the Bill will actually be implemented. You might have missed it by going on holiday, but it does mean that secondary legislation will now be prepared before 2018 is actually upon, us, but only just. And the good news is that the Department has set out the level of attainment that will be expected.  Landlords will have to improve their properties up to band E – not great, but since private rented properties are disproportionately to be found at the very lowest of the energy efficiency bands, in itself a real advance.

The second of the ‘buts’, however, remains firmly in that box. The Department has essentially bottled it as far as making the proposal into anything like a comprehensive measure covering all rented properties, and is proposing that the legislation only covers whole house lets. This means, not to put too fine a point on it, that the majority of properties will probably now entirely escape the requirements of the legislation. And if you are a prospective tenant looking to rent just part of house, you can be assured that your dwelling will remain just as draughty and fuel inefficient as, statistically at least, it will always have been. This wasn’t the intention of the legislation and I can only think that someone, somewhere has succumbed to a lot of pressure from some significant interests to drop the idea that the new laws might actually work properly.

I’ve been trying to get this omission plugged for some time now and I recently put a mini bill into the system with the specific aim of placing words onto primary legislation that ensures that all lets have to be included in any minimum standards programme. Unfortunately it is very unlikely to make any progress, so it is really down to the Secretary of State to change his mind about the omissions in the proposals for implementation. If you see him over the next couple of weeks, perhaps you can mention it to him…

This article first appeared in Business Green

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One thought on “Rented homes and energy efficiency: a sad tale of intention and action

  1. There is another important part of the rented housing stock that is set to be excluded from any requirement to be improved.
    According to the Government proposals included in their recent consultation, the only homes which will ever need to be improved are those where an Energy Performance Certificate has been issued, and registered as rating only F or G .
    Since 2006, it has been a legal requirement that every single new tenancy must be accompanied by the provision of an EPC. But because the Communities Department refuses to monitor enforcement levels, we cannot know how many tenants have ever received such information; most independent commentators reckon that it is the exception rather than the rule for an EPC to be issued. So,if the landlord has not bothered to acquire an EPC, then there is no means of knowing whether the home being let is an F or G standard. And therefore the building in question will be excluded from being covered by the legislation.

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