WIREDGOV

On the day that Ed Miliband MP, Energy Security & Net Zero Secretary, spoke on the topic of energy efficiency across the private rented sector, the NRLA provides its response to the Government’s policy proposals for the market.

According to media reports, the Secretary will announce significant changes to the sector in order to ensure private rented accommodation meets high energy efficiency benchmarks.

Responding to the anticipated announcement, Chris Norris, Policy Director for the National Residential Landlords Association recently 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.”

According to official data, in 2022, almost 45 per cent of private rented properties in England had an Energy Performance Certificate (EPC) rating of at least a C, more than double the rate compared to 2012.  However, a third of private rented sector homes were built before 1919, a higher proportion than any other tenure. These are among some of the hardest to improve properties of the entire housing stock.

Research suggests the UK is set to see a shortfall in the number of tradespeople grow to 250,000 by 2030 whilst the Committee on Fuel Poverty has argued that landlords could best be supported to improve the energy efficiency of rented housing, “through tax offsets for improvements, loans or potentially grants for landlords with a low profit margin in areas of low rental value.”

Notes:

• According to the English Housing Survey in 2022, 44.8% of private rented properties in England currently have an Energy Performance Certificate Rating of at least a C, up from 20.2%  2012. 
• The English Housing Survey reports that 31.5% of private rented sector dwellings were built before 1919, compared to 20.3% of owner-occupied properties and 6.8% of social rented sector dwellings.  
• Research by Kingfisher, owners of  Screwfix, B&Q and TradePoint, suggests that the UK is facing a shortage of 166,000 tradespeople, with the shortfall set to grow to 250,000 by 2030.
• The Committee on Fuel Poverty has noted:

“Currently the major energy efficiency programmes are targeted at the owner occupier sector (e.g. Energy Company Obligation, Home Upgrade Grant, Great British Insulation Scheme) or the SRS (Social Housing Decarbonisation Fund). Previously the Committee on Fuel Poverty argued that the PRS be treated as a commercial sector as landlords are effectively managing a business that should meet required standards. Landlords could be helped to meet these standards through tax offsets for improvements, loans or potentially grants for landlords with a low profit margin in areas of low rental value.”

• Further information about the NRLA can be found at www.nrla.org.uk.  It posts on X @NRLAssociation.
• The NRLA’s press office can be contacted by emailing press@nrla.org.uk or by calling 0300 131 6363.