3 reasons why we need better energy efficiency standards in the private rented sector
The past few years have been hard for private renters, especially when it comes to energy. 2 in 5 renters say their homes retain heat badly and renters are 2 times more likely to say their homes are very expensive to heat than homeowners. But parliament is currently debating a bill which has the potential to change things for the better. The Energy Bill could increase Minimum Energy Efficiency Standards for renters and help deliver warmer, greener homes that are cheaper to run but it won’t do so without a crucial amendment to make vague commitments into legal requirements.
Here’s 3 reasons why Dr Alan Whitehead MP’s amendment to the Energy Bill is so desperately needed:
1. Renters are wasting money heating inefficient properties
Renters are struggling to pay their energy bills. Despite energy prices falling from July, costs are still almost double what they were at this time 2 years ago and well above what many are able to comfortably afford.
The current minimum energy efficiency standards only require homes to have an Energy Performance Certificate (EPC) rating of E. And although the government proposed raising this to EPC C in 2020, they still haven’t even responded to the consultation. Despite opportunities to announce these changes the government has repeatedly failed to put its own proposals into legislation. This delay means that since the consultation closed in January 2021 renters have wasted £2.3 billion heating inefficient homes. And even with energy prices dropping, renters in homes at the current minimum efficiency standard are wasting almost £600 per year compared to those in homes with an EPC rating of C.
2. Cold, damp homes put renters’ health at risk
Renters are struggling to keep their homes warm, with 1 in 3 saying their home was rarely or never as warm as they’d like over winter. The high energy costs we’ve experienced have meant that almost 3 in 4 renters have had to cut back on their energy consumption this year.
This can also cause problems for health and wellbeing. Some renters have taken extreme measures to cut costs such as completely turning off their heating, or eating cold food to avoid the cost of heating it up. This has been a particular problem for renters over 65 who are 142% as likely to have reduced or stopped using their oven and 120% as likely to have cut back on their number of baths or showers than younger renters.
Increased energy efficiency makes homes easier to heat and stay warmer for longer and would prevent people needing to take such drastic action to reduce their energy usage. But data we’ve published today shows that 2 in 3 privately rented homes have poor energy efficiency and are rated at EPC band D or lower.
3. Landlords can afford to make the necessary improvements
The Government has been reluctant to raise standards in the private rented sector, saying that increased costs might force landlords out of the market and reduce the supply of properties available to rent.
But our research indicates that landlords take a more positive view of potential changes. Over half of landlords say that the responsibility for energy efficiency improvements lies entirely or mainly with the landlord rather than the Government. This suggests that fears of increased regulation driving landlords out of the market are likely to be untrue.
Our data also suggests that many landlords are financially able to make these changes with landlords 3 times more likely to have over £10,000 in savings than the national average and over 1 in 3 landlords having more than £50,000 in savings.
Government inaction has already cost renters billions of pounds in wasted energy bills, while landlords have been let off the hook entirely. Renters can’t wait any longer for these improvements to be made which is why we’re repeating our call on the Government to:
- Strengthen Minimum Energy Efficiency Standards in legislation, so all newly rented properties are EPC C by 2025, and existing tenancies by 2028
- Raise the cost cap for landlords to make upgrades from £3,500 to £10,000
- Kickstart the market for green finance to help landlords cover the costs of retrofitting their properties
- Use the Renters’ Reform Bill to end Section 21 ‘no fault’ evictions, giving renters the security they need to make necessary requests and complaints to their landlords
- Extend Awaab’s law to the private rented sector, requiring landlords to fix reported health hazards within specified timeframes
If you’re experiencing excessive cold, mould, or damp in a rented property our blog for tenants in England, and in Wales explains the causes, who’s responsible, and what to do.
