14th
Aug 2016
Tenants will almost certainly have to pay higher rents because of the government's policy to improve all housing stock's energy efficiency performances.
Reducing carbon emissions of 'homes' means that heating, ventilation, insulation and even types of fuel must be of a certain standard otherwise property owners will be prosecuted. Upgrading the residential energy efficiency is expensive and at the end of the day some of these costs will be placed onto the tenants.
Cars and planes are receive the most media coverage about being responsible for a large amount of emissions, however homes are twice as high.
A high percentage of rented properties that were built before 1919 will have to undergo major work to be compliant with the government's measures that come into force in 2018. If the properties do not meet the required level then they will not be able to be rented out. The costs for the improvements will eventually be handed down to tenants through increased rents.
The government is heavily criticised by an association in the private rented sector, as it made no reference to the PRS in its consultation on the future ECO (Energy Company Obligation).
The ECO focus was to be on how to combat fuel poverty and it proposes to extend the scheme to social sector which receives heavy subsidies as fewer of it homes and consequently tenants suffer from fuel poverty.
The government had provided subsidies to private landlords to improve energy efficiency in the Green Deal coupled with tax allowances. Since stopping this support it will cost landlords up to £5,000 to comply.
A spokesperson for the an association Richard Jones, said: “Whilst we all want to see improvements in the energy efficiency of homes to rent, that cannot come at the expense of driving up rents.
“The government’s proposals will amount simply to another tax on tenants.”
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