The Residential Landlords Association has moved to urge to Government to delay new energy efficiency targets scheduled for 2018.
Calls for the postponement come with a warning that if the changes go ahead as planned, rents will rise substantially.
Delays
In response to the Public Accounts Committee inquiry into the Green Deal and ECO scheme, the RLA believes that the timescale is too soon for many landlords.
The Green Deal, which promoted loans and grants to fund improvements, was abolished last year due to low demand. Now, a new ECO programme, where people on benefits obtain cash for improvements to their property, is being devised, with the intention of starting next year.
New energy efficiency targets require all rental properties to be brought up to a minimum energy performance certificate (EPG) rating of E or above by April 2018.
RLA calls for delay in energy efficiency targets
Warnings
Though landlords are not required to carry out energy efficiency improvements to any expense, the RLA is concerned about the possible impact on tenants.
A statement from the association said, ‘in our response to the Government, we at the RLA have warned costs incurred by landlords in carrying out improvements are likely to be passed to the tenants via rent rises.’[1]
In addition, the firm also points out that 18% of homes were built before the introduction of cavity walls in 1919.
‘Solid wall insulation is also an issue. This is necessary if we are to make older, harder to treat properties energy efficient. However we believe that it is out of reach of the vast majority of landlords financially without some form of public subsidy,’ the statement continues.[1]
‘The Government has already delayed the introduction of the register of exemptions to the legislation. We believe that the implementation of the minimum standards themselves should also be put back,’ it concludes.[1]
[1] https://www.lettingagenttoday.co.uk/breaking-news/2016/5/trade-body-wants-lettings-energy-efficiency-deadlines-to-be-delayed