MSE News

Energy upgrades for coldest rented homes to save tenants '£180/year'

Some of the coldest rented homes in England and Wales are set to get energy efficiency upgrades, due to amended rules announced by the Government today.

Since April, landlords who own some of the coldest privately-rented homes have been required to improve their properties with energy efficiency measures, but only where support is available to cover the costs.

But the amendment to the rule – announced after a consultation – now requires some to foot the bill themselves.

The measures will come into force next year and are expected to affect around 200,000 landlords.

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What do the new rules mean?

During 2019, properties with an Energy Performance Certificate (EPC) rating of F or G – the lowest two energy efficiency ratings available – must be made warmer by landlords before they can be put on the rental market for new tenants.

The cost to improve energy efficiency to band E is expected to cost landlords £1,200 on average and will affect 290,000 properties, which represents around 6% of the overall domestic market.

These changes are expected to save households an average of £180/year on energy bills, while reducing carbon emissions and potentially increasing property values, with analysis showing the cost to the landlord would be more than offset by the increase in property value.

What does the Government say?

Energy and Clean Growth Minister Claire Perry said: "While the vast majority of landlords take great pride in the properties they own, a minority still rent out housing that is difficult to keep warm.

"Upgrading these homes so they are more energy efficient is one of the most effective ways to tackle fuel poverty and help bring down bills for their tenants, saving them £180 a year.

"Everyone should be protected against the cold in their own home and today’s announcement will bring this reality closer."

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