Landlords back plan to make rented homes greener – apparently

The government should revive its EPC plan to make landlords insulate their rental properties to a higher standard, a think tank has said.

The Social Market Foundation (SMF) said that raising the Minimum Energy Efficiency Standard (MEES) for the private rented sector to an Energy Performance Certificate (EPC) rating of C would help the UK achieve its net zero emissions target by 2050.

The SMF said that 79% of landlords would support the move, which was originally planned for 2025 but was shelved by Prime Minister Rishi Sunak in September.

‘Raise the Minimum Energy Efficiency Standard for the private rented sector’

In its report, the SMF says: “Government should return to the plan to raise the Minimum Energy Efficiency Standard (MEES) for the private rented sector to an Energy Performance Certificate (EPC) rating of C. Government inaction on this is actively deterring landlords from making energy improvements.

“79% of landlords actually agree with raising the MEES to a C in the next few years.

“Raising MEES to a C would save the government money through reduced costs and pressures on the NHS and be beneficial to the wider economy with every £1 spent on insulation returning £3.20 in GDP.”

The report points out: “Making efficiency improvements tax deductible from landlords’ rental income could help with faster upgrading of energy efficiency in the PRS.

“However, this risks undermining the point of introducing a higher MEES in the first place and sets a concerning precedent for unnecessary concessions on environmental policy.”

Home heating accounts for 14% of the UK’s carbon emissions

The SMF says that home heating accounts for 14% of the UK’s carbon emissions and is essential to decarbonise if the UK is to reach net zero by 2050.

But the foundation warns that current policies are falling short, and that both homeowners and landlords have low trust in the insulation industry.

The think tank said that past experiences have led them to be wary of ‘cowboy traders’ and being overcharged, and that they are uncertain about where to find unbiased information about the appropriate type and cost of insulation.

The SMF said that minimum energy efficiency standards are the most effective motivator for landlords to insulate their homes, as they will take the necessary steps to rent their homes out.

Government should accredit installers to assure consumers

The think tank said that to improve trust in and information around the insulation industry, the government should accredit installers to assure consumers of their reliability.

Local authorities should also establish one stop shops to provide information on types of insulation and the support available, as well as success stories demonstrating the benefits of insulation.

The SMF also says that to nudge homeowners into action, the government should introduce Property Linked Finance with long payback periods to help owner occupiers cover the upfront costs of insulation.

And there should be checkpoint prompts with messaging around the health and wellbeing benefits of insulation should also be deployed at key moments such as renovations, the think tank said.

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