16:45 PM, 23rd September 2024, About 3 months ago 92
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Ed Miliband is willing to risk a fight with landlords to meet EPC C targets, according to The Times.
In a speech at the Labour party conference, Ed Miliband says landlords must provide decent standards for private rented homes including reaching EPC C targets by 2030.
The Department for Energy Security and Net Zero has announced that it will soon hold a consultation on proposals aimed at helping landlords meet EPC C targets for private and social rented homes.
The energy secretary told the Labour party conference: “We all know that the poorest people in our country often live in cold, draughty homes, many rent from private landlords whose properties are below decent standards.
“That is a Tory legacy and scandal. This government will not tolerate this injustice and we will end it. Decent energy standards for private rented homes that will mean warmer homes and lower bills for renters.”
The Department for Energy Security and Net Zero has now confirmed, a consultation is expected later this year, which is expected to include a cap on the amount landlords will have to spend on energy-efficiency upgrades.
This was set at £10,000 under previous plans by the Conservative government and Mr Miliband is expected to stick with a similar figure.
The government has also announced a new Warm Homes: Local Grant to help low-income homeowners and private tenants with energy performance upgrades and cleaner heating, and confirmed the continuation of the Public Sector Decarbonisation Scheme, as well as the Warm Homes: Social Housing Fund, which replaces the Social Housing Decarbonisation Fund, to support social housing providers and tenants.
The Times reports Labour sources are willing to risk a battle with landlords to reach their green goals.
Chris Norris, policy director for the National Residential Landlords Association (NRLA) says more detail is needed on how the government will help landlords meet energy-efficiency targets.
He said: “The NRLA wants to see all rented properties become as energy efficient as possible. However, the government’s approach must involve a clear and comprehensive plan which recognises that the sector has some of the oldest, and hardest to improve, properties in the UK’s housing stock.
“The sector needs a clear trajectory setting out what will be expected of it and by when. This plan must also ensure sufficient numbers of tradespeople are in place to undertake the work that will be required.
“Alongside this, as the Committee on Fuel Poverty has warned, is the need for a financial package to support investment in energy efficiency measures. At present, the private rented sector is the only housing tenure without a bespoke package to support work to upgrade homes.”
Reacting to the news, Ben Twomey, chief executive of Generation Rent, said “The commitment to raise minimum energy efficiency standards in privately rented homes to EPC Band C is welcome, but must happen as soon as possible. This is a no-brainer to lift tenants out of poverty, improve our health, and address climate change all at once. One in four private renters live in fuel poverty, and we cannot face another six winters in cold homes.
“Any consultation must keep tenant concerns at the centre of this change, and home improvements should be paid for in grants that already exist for households at risk of fuel poverty. Renters must be protected from eviction and exploitation when grants received in our name improve the value of our landlords’ assets, while the government needs to be prepared to get tough with non-compliant landlords.”
A spokesperson for the Country Land and Business Association (CLA) said: “For many rural homes, often historic or off the grid, these targets range from unrealistic to physically unachievable.
“Landlords could be forced to spend £10,000 with no guarantee of improving energy efficiency, but the real burden will fall on rural communities.
“While we agree that practical solutions to help make homes warmer are to be encouraged, the proposed approach is blunt, regressive and will not work.
“Our recent findings show that concerns around changes to energy efficiency standards are driving landlords to sell or repurpose properties, worsening the rural housing crisis. We need to cut emissions, but the government must work with landlords on realistic solutions.”
Beaver
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Sign Up13:42 PM, 21st October 2024, About 2 months ago
Reply to the comment left by GlanACC at 02/10/2024 - 18:43
I agree with this.
But what everybody in government, Generation Rent, Shelter, the SNP, the labour party needs to learn is that this will drive rents for tenants up.
As Mick Roberts has pointed out: The work is often really disruptive so practically you can't get a grant to do the work for many properties with the tenant in situ, but if the tenant leaves you are then not eligible for the grant.
The works are improvements and for many retrofits they will be extensive so they will be capex not opex. This means they will have to be financed and with the dual effect of (1) most landlords not being able to deduct their finance costs as they are mostly not incorporated, and (2) the increase in the cost of capital, this will drive up costs. The increased risk may mean that lenders are less likely to lend on properties below band C. If you do the works then re-let the property it will be at a much higher rent. Everything at the moment increases the risk for the landlord and the only possible options are to sell or put the rent up.
Band C+ properties will probably be marketed at a higher PCM rent anyway so if band D and below are removed from the rental market then rents will escalate dramatically.
Tenants won't necessarily trade higher rents for lower energy bills because EPC band C+ properties don't necessarily have lower energy bills.
So all policy makers need to understand that Ed is driving up rents for tenants and understand that they cannot blame landlords for that.
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Sign Up16:50 PM, 21st October 2024, About 2 months ago